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DEC 02 2025 PACKET
REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS CITY HALL 801 MAIN STREET TUESDAY, DECEMBER 02, 2025 1:30 PM AGENDA CALL TO ORDER INVOCATION PLEDGE OF ALLEGIANCE ROLL CALL PRESENTATIONS Communication Update Presentation by Care Solace Regarding Access to Mental Health in Beaumont PUBLIC COMMENT ON AGENDA/CONSENT Citizens may speak on the Consent Agenda and Regular Agenda Items 1-8 or any other topic. Items 9-13 have already been heard in a Public Hearing; therefore, citizens cannot speak on those items. Citizens wishing to speak on Item 14 will be given the opportunity to speak during the Public Hearing. CONSENT AGENDA (Items placed on the Consent Agenda are considered routine in nature and are considered non- controversial. The Consent Agenda can be acted upon in one motion. A consensus of the Council is required to remove any item for discussion and separate action.) A.Council to consider approving November 17, 2025 and November 18, 2025, City Council meeting minutes. B.Council consider a resolution approving the City of Beaumont Investment Policy. C.Council consider a resolution approving the renewal of an annual maintenance agreement from CentralSquare of Lake Mary, FL for use by Police, Fire, and EMS. D.Council consider a resolution approving the repair of a D8T dozer at the Landfill. E.Council consider a resolution accepting maintenance of the street, storm sewer, water, and sanitary sewer improvements in Wesley Addition. F.Council consider a resolution approving the purchase of replacement end-of-life storage disk storage shelves for the City's primary data storage equipment, from CDW-G of Vernon Hills, Illinois. G.Council consider a resolution approving the annual hardware maintenance renewal for all physical servers and the City Hall virtual server system, from CDW-G of Vernon Hills, Illinois. H.Council consideration of a resolution approving the purchase of end-of-life (EOL) technology equipment from CDWG of Vernon Hills, Illinois. I.Council consideration of a resolution approving the purchase of end-of-life (EOL) software replacements from SHI of Somerset, Franklin Township, NJ. J.Council to consider appointments to the Board of Adjustment and Building Board of Appeals. K.Council consider a resolution authorizing the acceptance of a 125 square feet Exclusive Water Line Easement. L.Council to consider a resolution authorizing the City Manager or his designee to apply for and receive funding in an amount up to $51,560.20 through the Bullet-Resistant Components for Law Enforcement Vehicles Grant. M.Council consider a resolution approving the repair to the runway lighting at Beaumont Municipal Airport. N.Council consider a resolution amending the existing agreement with Legacy Community Development Corporation to grant an extension of time for the HOME- ARP Tenant Based Rental Assistance project. REGULAR AGENDA 1. Council to consider a resolution authorizing the City Manager to execute a Collective Bargaining Agreement (CBA) with the Beaumont Police Officers Association (BPOA). 2.Council consider a resolution authorizing the City Manager to execute Change Order No. 4 to the contract with Norman Highway Constructors, Inc., for the Bridge Repair Project – Various Locations Citywide (REBID). 3.Council consider a resolution authorizing the City Manager to execute Change Order No. 4 to the contract with King Solution Services, LLC, of Houston, for the Grand Avenue & Magnolia Avenue Pipe Bursting Contract – Phase I. 4.Council consider an ordinance authorizing the acceptance of the proposed settlement of Texas Gas Service Company's (TGS or Company) 2025 base rate case. 5. Council to consider a resolution adopting an ethics policy: Rules of Conduct for City Officials. 6.Council consider a resolution authorizing the City Manager to execute Change Order No. 10 to the contract with ALLCO, LLC, of Beaumont, for the 48-Inch Pine Street Raw Water Line Project. 7.Council to accept the BeWell Grant for the period of, January 1, 2026, to August 31, 2027 8.Council to consider amending the ordinance containing the Master Fee Schedule for Environmental Health rates. 9.Council consider a request to amend Chapter 18, Article 18.03 Hotel Occupancy Tax, Section 28.03.023 Permitted Uses and adopt Section 28.04.009 Short-Term Rentals (STR) into the City of Beaumont Code of Ordinances. 10.Council consider a Specific Use Permit to allow a duplex within an R-S (Residential Single-Family Dwelling) District for property located at 690 Shell Road. 11.Council consider a Rezoning from R-S (Residential Single-Family Dwelling) District to GC-MD-2 (General Commercial Multiple-Family Dwelling-2) District for property located at 5430 Concord Road. 12.Council consider a Rezoning from A-R (Agricultural-Residential) District to R-S (Residential Single-Family Dwelling) District for property located at 12430 Keith Road. 13.Council consider a Rezoning from R-S (Residential Single-Family Dwelling) District to GC-MD-2 (General Commercial Multiple-Family Dwelling-2) District for properties located at 3209, 3211 and 3213 Shannon Avenue. PUBLIC HEARING Council to conduct a Public Hearing to receive comments regarding a Tax Abatement with Beaumont Bulk Solution LLC, (BBS) REGULAR AGENDA 14.Council to consider a resolution authorizing the City Manager to enter into a Tax Abatement Agreement with Beaumont Bulk Solution LLC (BBS). COUNCIL COMMENTS EXECUTIVE SESSION Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code to wit; specifically: Mariano Figueroa-Fuentes Shaquana Williams ADJOURNMENT Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Jacqueline K. Gunner at (409) 880-3782. A TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Tina Broussard, City Clerk MEETING DATE:December 2, 2025 REQUESTED ACTION:Council to consider approving November 17, 2025 and November 18, 2025, City Council meeting minutes. BACKGROUND None FUNDING SOURCE None RECOMMENDATION Approval of the minutes. ATTACHMENTS Minutes - November 17, 2025 and November 18, 2025. MINUTES OF THE CITY OF BEAUMONT SPECIAL COUNCIL MEETING Albert “A.J.” Turner, Mayor Pro Tem ROY WEST, MAYOR Mike Williams, At-Large Cory Crenshaw, Ward I CITY COUNCIL MEETING Joey Hilliard, Ward II LaDonna Sherwood, Ward IIINovember 17, 2025 Chris Durio, Ward IV Tina Broussard, City Clerk Kenneth R. Williams, City Manager Sharae Reed, City Attorney The City Council of the City of Beaumont, Texas, met in a Special session in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551 on November 17, 2025, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 2:00 p.m., to consider the following: OPENING Invocation Pledge of Allegiance Roll Call Public Comment: Persons may speak on Regular Agenda item No. 1 or any other topic. Mayor West called the council meeting to order at 2:06 p.m. Invocation was done by Mayor West as well as the Pledge of Allegiance. Roll call was made by Tina Broussard, City Clerk. Present at the meeting were Mayor West, Mayor Pro Tem Turner, Councilmembers Durio, Hilliard, and Crenshaw. Absent: Councilmembers Williams and Sherwood. Also, present were Kenneth R, Williams, City Manager; Sharae Reed, City Attorney; Tina Broussard, City Clerk. Public Comment: Persons may speak on the Regular Agenda item No. 1 or any other topic. (Public comments can be heard or seen on the City of Beaumont’s website at beaumonttexas.gov) None REGULAR AGENDA 1.Council to consider approval of an ordinance canvassing the results of the November 4, 2025, Special Bond Election. The Election Code, Section 67.003, states that each local canvassing authority shall convene to conduct the local canvass at the time set by the canvassing authority's presiding officer not later than the eleventh day after election day and not earlier than the latter of the third day after election day; the date on which the early voting ballot board has verified and counted all provisional ballots cast from addresses outside of the United States are counted, if a ballot to be voted by mail in the election was provided to a person outside of the United States. Council shall meet and canvass the returns and officially declare the results. Minutes – November 17, 2025 Approval of the ordinance. Councilmember Hilliard moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE CANVASSING THE RETURNS OF THE SPECIAL ELECTION OF THE CITY OF BEAUMONT HELD ON THE TH 4 DAY OF NOVEMBER 2025, FOR THE PURPOSE OF A BOND ELECTION; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR REPEAL. Mayor Pro Tem Turner seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, HILLIARD, AND CRENSHAW NAYS:NONE MOTION PASSED ORDINANCE 25-068 COUNCILMEMBER COMMENTS (Councilmember comments can be heard or seen on the City of Beaumont’s website at beaumonttexas.gov) With there being no Executive Session the meeting adjourned at 2:06 p.m. Roy West, Mayor Tina Broussard, City Clerk Minutes – November 17, 2025 MINUTES OF THE CITY OF BEAUMONT COUNCIL MEETING Albert “A.J.” Turner, Mayor Pro Tem ROY WEST, MAYOR Mike Williams, At-Large Cory Crenshaw, Ward I CITY COUNCIL MEETING Joey Hilliard, Ward II LaDonna Sherwood, Ward IIINOVEMBER 18, 2025 Chris Durio, Ward IV Tina Broussard, City Clerk Kenneth R. Williams, City Manager Sharae Reed, City Attorney The City Council of the City of Beaumont, Texas, met in a regular session in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551 on November 18, 2025, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:30 p.m. to consider the following: OPENING Invocation Pledge of Allegiance Roll Call Public Comment: Persons may speak on the Consent Agenda and Regular Agenda items 1-6 or any other topic. Mayor West called the council meeting to order at 1:30 p.m. Pastor Brett Holmes with Calder Baptist Church gave the invocation. Mayor West led the Pledge of Allegiance. Roll call was made by Tina Broussard, City Clerk. Present at the meeting were Mayor West, Mayor Pro Tem Turner, Councilmembers Durio, Hilliard, Williams, Sherwood and Crenshaw. Also, present were Kenneth R, Williams, City Manager; Sharae Reed, City Attorney; Tina Broussard, City Clerk. Service Awards Presentation: Last NameFirst NamePosition Years of Service MooreBurtPolice Sergeant35 GilbertMichelle311 Customer Service Rep30 LewallenTinaPolice Officer30 BordelonChristiaanDeputy Fire Chief30 LeblancLonnieCrew Leader-WU30 WalkerRonaldCrew Leader30 WasserAaronPolice Officer25 CroakerMichaelFire Captain25 Mayor West read the announcement regarding Executive Session being held after the conclusion of Councilmember Comments. Public Comment: Persons may speak on the Consent Agenda and Regular Agenda items 1-6 or any other topic. (Public comments can be heard or seen on the City of Beaumont’s website at beaumonttexas.gov) Minutes – November 18, 2025 Addie Allen9695 GrossBeaumont TX CONSENT AGENDA (Items placed on the Consent Agenda are considered routine in nature and are considered non- controversial. The Consent Agenda can be acted upon in one motion. A consensus of the Council is required to remove any item for discussion and separate action.) A.Council to consider approving November 4, 2025, City Council meeting minutes. B.Council to consider a resolution approving the purchase of line striping equipment for use in the Traffic Management Division – Resolution 25-288 C.Council to consider a resolution approving the purchase of six (6) golf carts for use at the Henry Homberg Golf Course – Resolution 25-289 D.Council to consider a resolution authorizing the removal and replacement of flooring at Texas Energy Museum – Resolution 25-290 E.Council to consider approving a resolution that the 212 votes for the City of Beaumont be spread among all five nominees for the Board of Directors of the Jefferson Central Appraisal District – Resolution 25-291 F.Council to consider granting amendment to Resolution No. 25-112 – Resolution 25-112- A G.Council to consider authorizing the acceptance of an Exclusive Water Line Easement – Resolution 25-292 H.Council to consider a resolution approving the six (6) month contract for the purchase of Liquid Chlorine for use by the Water Utilities Department – Resolution 25-293 I.Council to consider a resolution approving the annual software renewal for Laserfiche, the City’s document management and records retention system, from MCCi, LLC of Tallahassee, Florida – Resolution 25-294 J.Council to consider a correction to the Library Commission – Resolution 25-221-B K.Council to consider a resolution approving the six (6) month contract to provide automotive lubricants for use in City vehicles and equipment – Resolution 25-295 L.Council to consider a resolution authorizing the Mayor, City Manager, and appropriate signatories to execute a Memorandum of Understanding for a Mutual Aid Agreement between the City of Beaumont and the Beaumont Independent School District – Resolution 25-296 M.Council to consider a resolution authorizing the Chief Financial Officer to apply for and receive $108,750 in funding through the Department of Homeland Security (DHS) 2025 Port Security Grant Program (PSGP) – Resolution 25-297 N.Council to consider a resolution rejecting all submissions of the Request for Proposal for Veterinary Services – Resolution 25-298 Minutes – November 18, 2025 Councilmember Sherwood moved to approve the Consent Agenda. Councilmember Hilliard seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW NAYS:NONE MOTION PASSED REGULAR AGENDA 1.Council to consider a resolution authorizing the City Manager to execute Change Order No. 1, accept maintenance and authorize final payment to Elite Contractors for the Laura Addition Drainage Improvements Project. On April 15, 2025, by Resolution No. 25-083, City Council awarded a contract to Elite Contractors, of Kirbyville, TX, in the amount of $1,420,460.00, for the Laura Addition Drainage Improvements Project. Proposed Change Order No. 1, in the amount of ($5,600.00), is necessary to adjust estimated quantities to actual quantities used on the project. If approved, Change Order No. 1 will result in a final Contract amount of $1,414,860.00. The project was inspected by the Engineering Division and found to be complete in accordance with the provisions and terms set forth in the contract. Approval of final Change Order No. 1, acceptance of maintenance, and final payment in the amount of $99,580.82 is recommended. Funds will come from Certificates of Obligation in the amount of $549,860.00 and Community Development Block Grant (CDBG) under the 2019 Hazard Mitigation Competition in the amount of $865,000.00. Approval of the resolution. Councilmember Durio moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE CHANGE ORDER NO. 1 IN THE AMOUNT OF ($5,600.00), ACCEPT MAINTENANCE, AND MAKE FINAL PAYMENT TO ELITE CONTRACTORS, OF KIRBYVILLE, TEXAS, IN THE AMOUNT OF $99,580.82 FOR THE LAURA ADDITION DRAINAGE IMPROVEMENTS PROJECT. Mayor Pro Tem Turner seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW NAYS:NONE MOTION PASSED RESOLUTION 25-299 Minutes – November 18, 2025 2.Council to consider a resolution authorizing the City Manager to execute Change Order No. 2, accept maintenance and authorize final payment to Vortex Companies for the West Lucas Drive Subsurface Void Repair with Grout Injection Project. On April 1, 2025, by Resolution No. 25-072, City Council awarded a contract to Vortex Companies, of Houston, in the amount of $3,421,812.50, for the West Lucas Drive Subsurface Void Repair with Grout Injection Project. There was a previous Change Order No. 1, with no dollar amount. Proposed Change Order No. 2, in the amount of ($16,900.00), is necessary to adjust estimated quantities to actual quantities used on the project. If approved, Change Order No. 2 will result in a final Contract amount of $3,404,912.50. The project was inspected by the Engineering Division and found to be complete in accordance with the provisions and terms set forth in the contract. Approval of final Change Order No. 2, acceptance of maintenance, and final payment in the amount of $74,600.00 is recommended. Funds will come from Certificates of Obligation. Approval of the resolution. Councilmember Sherwood moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE CHANGE ORDER MO. 2 IN THE AMOUNT OF ($16,900.00), ACCEPT MAINTENANCE, AND MAKE FINAL PAYMENT TO VORTEX COMPANIES, OF HOUSTON, TEXAS, IN THE AMOUNT OF $74,600.00 FOR THE WEST LUCAS DRIVE SUBSURFACE VOID REPAIR WITH GROUT INJECTION PROJECT. Councilmember Durio seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW NAYS:NONE MOTION PASSED RESOLUTION 25-300 3.Council to consider a resolution authorizing the City Manager to execute Change Order No. 2, accept maintenance, and authorize final payment to Preferred Facilities Group for the Neches Street Quiet Zone Median Reconstruction Project. On May 20, 2025, by Resolution No. 25-115, City Council awarded a contract to Preferred Facilities Group – USA, of Beaumont, Texas, in the amount of $77,817.32, for the Neches Street Quiet Zone Median Reconstruction Project. There was a previous Change Order No. 1, in the amount of ($2,499.99). Proposed Change Order No. 2, in the amount of $4,640.99 is necessary to reconcile estimated quantities with actual quantities used on the project and to correct a three-cent ($0.03) unit price rounding discrepancy identified within the project management software. If approved, the adjustment in quantities will result in a final contract amount of $79,958.29. Minutes – November 18, 2025 The project was inspected by the Engineering Division and found to be complete in accordance with the provisions and terms set forth in the contract. Acceptance of Change Order No. 2, maintenance, and final payment in the amount of $8,406.85 is recommended. Funds will come from Certificates of Obligation. Approval of the resolution. Councilmember Hilliard moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE CHANGE ORDER NO. 2 IN THE AMOUNT OF $4,640.99, ACCEPT MAINTENANCE, AND MAKE FINAL PAYMENT TO PREFERRED FACILITIES GROUP – USA, OF BEAUMONT, TEXAS, IN THE AMOUNT OF $8,406.85 FOR THE NECHES STREET QUIET ZONE MEDIAN RECONSTRUCTION PROJECT. Councilmember Mayor Pro Tem Turner seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW NAYS:NONE MOTION PASSED RESOLUTION 25-301 4.Council to consider a resolution authorizing the City Manager to execute Change Order No. 2, accept maintenance, and authorize final payment to King Solution Services, LLC, of Houston, for the Street Rehab Phase V Sewer Line Replacement Project. On September 12, 2023, by Resolution No. 23-247, City Council awarded a contract to King Solution Services, LLC, of Houston, for the Street Rehab Phase V Sewer Line Replacement Project in the amount of $2,210,675.00. There was a previous Change Order No. 1 in the amount of $7,200.00. Proposed Change Order No. 2, in the amount of ($87,659.05), is necessary to adjust estimated quantities to actual quantities used on the project. If approved, the final contract amount will be $2,130,215.95. The project was inspected by Water Utilities Staff and found to be complete in accordance with the provisions and terms set out in the contract. Acceptance of Change Order No. 2, maintenance, and final payment in the amount of $222,830.18 is recommended. Funds will come from the American Rescue Fund. Approval of the resolution. Minutes – November 18, 2025 Councilmember Sherwood moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE CHANGE ORDER NO. 2 IN THE AMOUNT OF ($87,659.05), ACCEPT MAINTENANCE, AND MAKE FINAL PAYMENT TO KING SOLUTION SERVICES, LLC, OF HOUSTON, TEXAS, IN THE AMOUNT OF $222,830.18 FOR THE STREET REHAB PHASE V SEWER LINE REPLACEMENT PROJECT. Councilmember Durio seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW NAYS:NONE MOTION PASSED RESOLUTION 25-302 5.Council to consider a resolution authorizing the City Manager to execute Change Order No. 9 to the contract with ALLCO LLC, of Beaumont, for the 48-Inch Pine Street Raw Water Line Project. On July 18, 2023, by Resolution No. 23-193, City Council awarded a contract to ALLCO, LLC, of Beaumont, in the amount of $29,191,513.63. There was a previous Change Order Nos. 1 - 8 in the amount of ($8,236,670.93). Proposed Change Order No. 9, is requested in the amount of $115,762.46. During construction of the 48-inch Raw Water Line along Pine Street, unforeseen field conditions were encountered, including previously unidentified layers of concrete and stabilized base material beneath the roadway. The proposed change order provides for the removal and disposal of these materials necessary to complete installation, as well as a credit adjustment in the amount of ($172,868.75) for asphalt and base quantities. These conditions were not evident during the design phase and required modification to the original scope of work. If approved, Change Order No. 9 would result in a new contract amount of $21,070,605.16 with no additional calendar days to be added to the contract time. Funds will come from Certificates of Obligation and CDBG/GLO. Approval of the resolution. Councilmember Durio moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO ACCEPT CHANGE ORDER NO. 9 IN THE AMOUNT OF $115,762.46 FOR THE ADJUSTMENTS DESCRIBED ABOVE, FOR THE 48-I NCH PINE STREET RAW WATER LINE PROJECT. Councilmember Sherwood seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW NAYS:NONE MOTION PASSED Minutes – November 18, 2025 RESOLUTION 25-303 6.Council to consider an ordinance providing for the reimbursement of capital expenditures incurred prior to the closing of financing. The FY 2026 budget included the order of thirty (30) pieces of fleet equipment. FY 2026 budget was approved by Council on September 16, 2025. The approved amount for financing totaled $3,503,925. Due to varying lead times for fleet equipment, payment for certain items may occur prior to receiving the proceeds of financing. A reimbursement ordinance is warranted to allow the city to reimburse itself for the fleet equipment out of the financing proceeds. Funds will come from the debt proceeds related to this financing and will be budgeted in the Capital Reserve and Debt Service Funds for the duration of lease payments. Approval of the ordinance. Councilmember Durio moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE DECLARING AN INTENT OF THE CITY OF BEAUMONT TO REIMBURSE ITSELF FROM PROCEEDS OF GENERAL OBLIGATIONS EXPECTED TO BE ISSUED BY THE CITY FOR CERTAIN ORIGINAL EXPENDITURES PAID IN CONNECTION WITH THE CITY’S FINANCING OF FLEET EQUIPMENT. Councilmember Hilliard seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW NAYS:NONE MOTION PASSED ORDINANCE 25-069 WORK SESSION Council to review and discuss Low Income Housing Tax Credits Council to review and discuss the Water Customer Service Audit Council to review and discuss the Health Department Inspection Fees COUNCILMEMBER COMMENTS (Councilmember comments can be heard or seen on the City of Beaumont’s website at beaumonttexas.gov) EXECUTIVE SESSION Discuss and Deliberate Economic Development Negotiations in accordance with Section 551.087 of the Government Code to wit; specifically: Project Riverfront and the Downtown Hotel Project Minutes – November 18, 2025 Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Civil Action No. 1:24-cv-00085-MJT; In the United States District Court for the Eastern District of Texas, Beaumont Division; Linh N. Bass v. Joshua Jackson Open Session of the meeting adjourned at 3:56 p.m. Roy West, Mayor Tina Broussard, City Clerk Minutes – November 18, 2025 B TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Bridgette Evick, CPA, Chief Financial Officer MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a resolution approving the City of Beaumont Investment Policy. BACKGROUND State law mandates the City Council to review the Investment Policy and approve modifications, if any, on an annual basis. The City last made amendments to the Investment Policy on October 29, 2024, through resolution 24-269. This year, the following changes were made: 1.Title – update for board approval date 2.Table of Contents – correct paragraph title 3.Pg 2 – confirm investment officer titles 4.Pg 7 – add “less FDIC or NCUSIF” to letter of credit collateral wording 5.Pg 13 – added market values from independent sources wording to reporting FUNDING SOURCE Not Applicable RECOMMENDATION Approval of the resolution. ATTACHMENTS C TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Angela Wright, Chief Technology Officer MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a resolution approving the renewal of an annual maintenance agreement from CentralSquare of Lake Mary, FL for use by Police, Fire, and EMS. BACKGROUND CentralSquare software plays a vital role in dispatching emergency personnel, records management for Police, miscellaneous reporting, case management, and various other crucial functions for Police, Fire, and EMS. Procuring this software is exempt from competitive bidding because it is exclusively available from a single source with the rights to modify and maintain it. The software maintenance agreement ensures 24/7 unlimited telephone support for 911 dispatching, with additional Monday through Friday, 8 AM to 5 PM support for mobile computers, electronic field reporting, and all records management applications. Moreover, it includes annual software upgrades. This agreement, valued at $443,335.54, covers an annual period starting from January 2026. FUNDING SOURCE General Fund. RECOMMENDATION Approval of the resolution. D TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a resolution approving the repair of a D8T dozer at the Landfill. BACKGROUND Unit 5190 is a 2014 Caterpillar D8T Dozer with 9878 working hours. This equipment is critical to landfill operations, where it is used daily to cover debris in compliance with the Texas Commission on Environmental Quality (TCEQ) regulations. Replacement of the transmission and torque converter will be performed by Mustang Cat of Houston in the amount of $94,819.92. Mustang Cat is the Sole Source Vendor for this work. The repairs will include a 3 year/5000-hour warranty. FUNDING SOURCE Fleet Management Fund. RECOMMENDATION Approval of the resolution. ATTACHMENTS Quote attached. E TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a resolution accepting maintenance of the street, storm sewer, water, and sanitary sewer improvements in Wesley Addition. BACKGROUND Diamond Homes, LLC constructed roadside ditch improvements along approximately 3,130 linear feet of Vinson Street and extended the water infrastructure approximately 1,265 linear feet to the south. Recommended for acceptance are the right-of-way improvements only, including roadside ditches, streetlights, and water infrastructure for Wesley Addition. The improvements passed a final inspection by all stakeholder entities on November 5, 2025. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS Wesley Addition Subdivision F TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Angela Wright, Chief Technology Officer MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a resolution approving the purchase of replacement end-of-life storage disk storage shelves for the City's primary data storage equipment, from CDW-G of Vernon Hills, Illinois. BACKGROUND The Information Technology Department is requesting approval to replace end-of-life (EOL) storage disk shelves that support the City’s primary data storage environment. These shelves are essential components of the centralized storage system that provides secure and reliable data access for all City departments. The current shelves reach manufacturer end-of-life in FY26 and will no longer receive support or security updates. The storage system currently supports: Backup and recovery for production servers Hosting of operational data for all City departments Storage of high-volume video, documents, and archival records The Total Cost: $116,487.64 procurement will be completed through the TIPS purchasing contract, a national cooperative purchasing program that provides competitively bid contracts to public entities, enabling compliance with procurement laws while securing volume-based pricing. FUNDING SOURCE Capital Reserve. RECOMMENDATION Approval of the resolution. This agenda item was prepared with assistance from AI drafting tools. G TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Angela Wright, Chief Technology Officer MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a resolution approving the annual hardware maintenance renewal for all physical servers and the City Hall virtual server system, from CDW-G of Vernon Hills, Illinois. BACKGROUND The City operates a distributed server environment consisting of physical servers located across multiple data centers, as well as a centralized virtual server system housed at City Hall. These systems support essential applications and data for all departments, including public safety, finance, utilities, and administration. Annual hardware maintenance ensures continued reliability, timely replacement of failed components, and sustained operational performance. The proposed maintenance renewal provides vendor-supported coverage for all physical server hardware across the City’s data centers and for the virtual server system at City Hall for the term January 1, 2026, through December 31, 2026, in the total amount of $80,949.96. The procurement will be completed through the TIPS purchasing contract, a national cooperative purchasing program that provides competitively bid contracts to public entities, enabling compliance with procurement laws while securing volume-based pricing. FUNDING SOURCE General, Municipal Court Technology, Water, Fleet, Solid Waste, Hotel Occupancy Tax (HOT), and Airport Funds. RECOMMENDATION Approval of Resolution. AI assistance was used in drafting this agenda memo. H TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Angela Wright, Chief Technology Officer MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consideration of a resolution approving the purchase of end- of-life (EOL) technology equipment from CDWG of Vernon Hills, Illinois. BACKGROUND The City maintains a standardized replacement schedule for technology assets to ensure system reliability, security, and compatibility. All workstation equipment—including desktops, laptops, iMacs, and MDCs—is replaced on a five-year lifecycle. iPads and related peripherals are replaced only when they reach end of life as determined by the manufacturer or when they are no longer supported by compatible cellular carriers. This item supports end-of-life replacements across multiple City departments. Equipment will be ordered at appropriate points in the fiscal year to align with operational needs, project timelines, and budget management. Fiscal Impact | Total cost: $370,167.16 Equipment will be procured through standard purchasing contracts that provide the best value, with expenditures spread across the fiscal year. FUNDING SOURCE Captial Reserve, Water, Solid Waste, Hotel Occupancy Tax (HOT), Airport, and Transit Funds. RECOMMENDATION Approval of resolution. ATTACHMENTS Blanket Purchase Order for EOL Equipment HD.xlsx Portions of this agenda item were prepared using AI-assisted drafting tools to improve clarity and efficiency. I TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Angela Wright, Chief Technology Officer MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consideration of a resolution approving the purchase of end- of-life (EOL) software replacements from SHI of Somerset, Franklin Township, NJ. BACKGROUND The City follows a structured technology replacement cycle to maintain security, compatibility, and operational readiness. While workstation hardware is replaced on a scheduled five-year cycle, software products are replaced when they reach the manufacturer's end of support or no longer meet industry security requirements. This includes replacement of 189 Microsoft Office 2016 and 2019 licenses, which are now at end of support and must be upgraded to maintain compatibility and security. Fiscal Impact | Total cost: $61,425.00 Software will be procured through standard purchasing contracts that provide the best value. FUNDING SOURCE Capital Reserve. RECOMMENDATION Approval of resolution. ATTACHMENTS Blanket Purchase Order for EOL Equipment HD.xlsx Portions of this agenda item were prepared using AI-assisted drafting tools to improve clarity and efficiency. J TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Sharae Reed, City Attorney MEETING DATE:December 2, 2025 REQUESTED ACTION:Council to consider appointments to the Board of Adjustment and Building Board of Appeals. BACKGROUND Mayor West appoints Rogers Sorrell and Tom Rowe to the Board of Adjustment. The term for each shall begin on December 2, 2025, and expire on December 2, 2027. Mayor West appoints Duwayne Herrmann Jr., to the Building Board of Appeals, Building Industry position. The term shall begin on December 2, 2025, and expire on September 30, 2027. FUNDING SOURCE Not applicable. RECOMMENDATION None. ATTACHMENTS K TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a resolution authorizing the acceptance of a 125 square feet Exclusive Water Line Easement. BACKGROUND Linde, Inc. has agreed to convey a 125 square feet exclusive Water Line Easement to the City of Beaumont. The easement is described as being a 125 square feet tract out of and part of Tract No. 14C of the Partition Map No. 2 of the McFaddin Trust Company, situated in the D. A. Cunningham Survey, Abstract No. 15, Jefferson County, Texas. The easement is for a fire hydrant and water meter for the Linde Texas Helium facility located at 16495 West Port Arthur Road. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS Water Line Easement - 16495 West Port Arthur Road L TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Tim Ocnaschek, Chief of Police MEETING DATE:December 2, 2025 REQUESTED ACTION:Council to consider a resolution authorizing the City Manager or his designee to apply for and receive funding in an amount up to $51,560.20 through the Bullet-Resistant Components for Law Enforcement Vehicles Grant. BACKGROUND The Beaumont Police Department is seeking approval to apply for the Texas Office of the Governor's Bullet-Resistant Components for Law Enforcement Vehicles grant. State funds for these projects are authorized by H.B. 2217 Section 772.013 passed during the 89th Regular Session and appropriated under H.B. 500 Section 1.34 for Trusteed Programs within the Office of the Governor. This funding will allow installation of NIJ-certified bullet-resistant glass and panels into five Police vehicles. Currently the department has one armored vehicle to support multiple entry teams. Upgrading these vehicles will significantly enhance officer safety and operational effectiveness during encounters with armed suspects and violent crime incidents. FUNDING SOURCE No match is required RECOMMENDATION Approval of the resolution. ATTACHMENTS Bullet-Resistant Components for Law Enforcement Vehicles NOFO Sample Resolution Template Quote 600707 Quote 601297 Quote 600675 S AMPLE R ESOLUTION WHEREAS, The ____City Council_____(Governing Body) finds it in the best interest of the citizens of __the City of Beaumont____, (Geographic Area) that the _Bullet-Resistant Vehicle Upgrades_ (Name of Project) be operated for the _FY 2026____ (Year); and WHEREAS, __City Council_(Governing Body) agrees to provide applicable matching funds for the said Commented \[PC1\]: Page: 1 project as required by the __Bullet-Resistant Components for Law Enforcement Vehicle_______ It is not necessary to include the dollar or percentage amount, just a commitment to provide the applicable match. Changes (Funding Source) grant application; and in the award amount could result in a requirement for the grantee to submit a new resolution. WHEREAS, _City Council_ (Governing Body) agrees that in the event of loss or misuse of the Office of the Governor funds, ____City Council_ (Governing Body) assures that the funds will be returned to the This provision is not required for resolutions submitted under Office of the Governor in full. some funding sources because no matching funds are required – check the application instructions for the applicable WHEREAS, ____City Council___ (Governing Body) designates _the City Manager__ (Name and/or match requirements for this funding source. Position Title) as the grantee’s authorized official. The authorized official is given the power to apply for, accept, reject, alter or terminate the grant on behalf of the applicant agency. Commented \[PC2\]: If you designate a name, you will always need to submit a new resolution if the authorized official NOW THEREFORE, BE IT RESOLVED that __City Council_____ (Governing Body) approves changes. submission of the grant application for the __Bullet-Resistant Vehicle Upgrades____ (Name of Project) to the Office of the Governor. Signed by: Passed and Approved this _____ (Day) of __________ (Month), _____ (Year) Grant Number: ____________________________ Commented \[am3\]: The Grant Number (ex: 1650304) can be found in eGrants after you create a new or continuation funding solicitation. PSO Sample ResolutionPage 1 of 1 M TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a resolution approving the repair to the runway lighting at Beaumont Municipal Airport. BACKGROUND Due to multiple hurricanes, the runway lighting system at the Beaumont Municipal Airport has developed significant saltwater corrosion and needs immediate complete replacement for safety purposes. To ensure continuity within the airport lighting systems, the City will utilize B-C Company of Dallas, TX, as a best value vendor for the total amount of $56,002.00. B-C Company is the current vendor for taxiway lights, and the PAPI System (Approach Path Indicator) lights. This project is eligible for funding through the Routine Airport Maintenance Program (RAMP), a reimbursement program under which the City is responsible for 10% of the total cost, and TxDOT Aviation reimburses the remaining 90%. The City’s share of the project cost will be $5,600.20. FUNDING SOURCE RAMP - $50,401.80, General Fund - $5,600.20 RECOMMENDATION Approval of the resolution. ATTACHMENTS B-C COMPANY, INC. P. O. BOX 136729 FT. WORTH, TEXAS 76136 PHONE (817) 236-6000 FAX (817) 236-3000 EMAIL: mikeb@b-ccompany.net ____________________________________________________________________________________________ July 7, 2025 Beaumont Municipal Airport 455 Keith Rd. Beaumont, TX 77713 PO# Attention: Chris Meaux Reference: Replace edge lighting with LED Quote 2026R BEAUMONT 01 Furnish labor, Materials and etc. to remove old incandescent runway lighting with new LED. Work to include removal of old lights, transformers, base plates and connector kits. Install new transformers, connector kits, base plates and lights. Furnish materials replace insufficient sections of R/W cable and existing connector kits, as well as replace non-stainless bolts, and drill/tap broken bolts out. Total Lump sum: $ 56,002.00 Respectfully submitted, Michael Bartholomew Field Services Quotes valid 30 days Payment Terms: net due 30 days from receipt, 1 ½% interest there after N TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Demi Engman, Director of Planning and Community Development MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a resolution amending the existing agreement with Legacy Community Development Corporation to grant an extension of time for the HOME-ARP Tenant Based Rental Assistance project. BACKGROUND The City Council passed Resolution No. 23-387 on December 19, 2023, which authorized the City Manager to execute a grant agreement with Legacy CDC for the HOME-ARP Tenant Based Rental Assistance project. The current agreement term will expire in January of 2026. Legacy CDC requested an extension of time to the grant agreement term to October 31, 2026. The extension of time will allow remaining funding to assist approximately 4-6 more clients. FUNDING SOURCE U.S. Department of Housing and Urban Development, HOME Investment Partnership Funds HOME ARP 2021. RECOMMENDATION Approve the resolution. ATTACHMENTS Draft Grant Agreement CITY OF BEAUMONT HOME INVESTMENT PARTNERSHIP GRANT PROGRAM FOR HOME-ARP CONTRACT FOR A NON-PROFIT SUBRECIPIENT STATE OF TEXAS COUNTY OF JEFFERSON CITY OF BEAUMONT SECTION 1. PARTIES TO THE CONTRACT This contract and agreement are made and entered into by and between the City of Beaumont, Resolution of the City Council of the City of Beaumont and Tender Loving Care Center for Children dba Legacy Community Development Corporation, Jefferson County, Texas its President/CEO, duly authorized by its Board of Directors. The parties hereto agree, by the execution hereof, that they are bound to the mutual obligations and to the performance and accomplishment of the tasks described herein. WITNESSETH THAT: WHEREAS, the American Rescue Plan went into effect on March 11, 2021, and included funding for the HOME Investment Partnership Grant; and, WHEREAS, the City of Beaumont made an application for HOME Investment Partnership Grant American Rescue Plan (HOME-ARP) Entitlement funds from the U.S. Department of Housing and Urban Development, herein referred to as , under Title I of the Housing and Community Development Act of 1974, as amended, Public Law 93-383; and, WHEREAS, the City of Beaumont has been awarded ONE MILLION EIGHT HUNDRED SIXTY-FIVE THOUSAND THREE HUNDRED NINTY FOUR AND 00/100 Dollars ($1,865,394) in HOME-ARP entitlement funds; and, 1 WHEREAS, the City of Beaumont is undertaking certain activities to develop a viable community by providing decent housing, a suitable living environment, and expanding economic opportunities principally for HOME-ARP Qualifying Populations, as described in the HOME-ARP Program applications; and, WHEREAS, The Subrecipient has requested funds from the City for the benefit of HOME-ARP Qualifying Populations; and, WHEREAS, the City and Subrecipient desire to enter into an Agreement in accordance with 24 Code of Federal Regulations (CFR) Part 92 and the HOME-ARP Notice, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards to provide the Subrecipient a sub-award from HOME-ARP funds to carry out Project activities in compliance with the HOME-ARP program application; and, WHEREAS, -ARP funds is contingent upon execution of funding approval Agreement by the City and HUD, and, WHEREAS, the funding and other City administration of this agreement shall be through the City of Beaumont Community Development Department; and, WHEREAS, Exhibits A, B, and C are essential to this Agreement, attached hereto, and incorporated herein by reference. NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, the parties hereto agree as follows: ARTICLE 1 WHEREAS CLAUSES The WHEREAS clauses set forth above are incorporated herein by reference and made a part of the Agreement 2 ARTICLE II DEFINITIONS 1. The City means the City of Beaumont. Community Development Corporation. - Plan. --21-10. 12. Business Day(s) shall mean Monday to Friday and do not include public holidays and weekends. ARTICLE III STATEMENT OF WORK 1. Project: Subrecipient shall utilize HOME-ARE Funds to perform the in full and complete accordance with this agreement. 2. Schedule: The Subrecipient shall perform the Project in accordance with the schedule and deadlines set forth in Exhibit A. ARTICLE IV BUDGETS In consideration of the provision of services by the Subrecipient, the City is allocating an amount of above. Additional requirements of the Project shall be as described in Exhibit A, attached hereto and incorporated by reference. The Allocated Sum is to be requested within a period of twenty-four (24) twelve (12) months from the Effective Date of this Agreement. 3 The City and the SUBRECIPIENT may agree to revise the budget in accordance with HOME-ARP regulations and existing City policies. Expenditures reimbursed with HOME- ARP funds shall be limited to eligible activities as determined by the City for the Project as described in Article III. ARTICLE V TERMS OF AGREEMENT 1. effect for two (2) years unless earlier terminated as provided herein in Article XII. 2. Upon written request on letterhead from the Subrecipient, the Term may be extended up to two (2) months twelve (12) months past the expiration date upon approval from the City Council. The letter must be dated and signed before the expiration of the Agreement by a person with signature authorization. ARTICLE VI FUNDING Funding Delivery: The HOME-ARP funding shall be delivered to the Subrecipient or the Eligible expenditures made during the Term of the Agreement shall be reimbursed pursuant to the terms of the Agreement. Notwithstanding the foregoing, funding may be suspended in the event Quarterly Performance Reports (Exhibit C, attached hereto) are not submitted timely to the City. Reimbursement by the City of the Allocated Sum to the SUBRECIPIENT shall be submitted quarterly using the forms attached as Exhibit C, Request for HOME-ARP Reimbursement, and Quarterly Performance Report. Payment requests must comply with the applicable requirements of 2 CFR 200 and must meet the following criteria: 1. The SUBRECIPIENT shall submit to the City, through the Community Development Block Grant/Housing Division, all documents requested by the City verifying the request for limited to: 4 a. When HOME-ARP reimbursement is sought for salaries or related benefits for employees, individual timesheets must be kept. Benefits may only be claimed for the portion of the salary being requested. Timesheets must identify funding sources for the employee. HOME-ARP and other activities undertaken by the employee must be documented on the timesheet with the date, times and the number of hours worked. Timesheets must be signed by the employee and an individual with signatory authority pursuant to the governing documents of the Subrecipient (I.e., corporate bylaws or resolution), and all applicable cancelled checks (front and back) or a bank statement, if the cancelled checks are not legible, ross wages and benefits being requested for reimbursement for each employee. If health or other benefits are being reimbursed, proof of those items must be included in the invoice. b. When reimbursement is sought for services or materials, a copy of the applicable invoice or receipt for materials or services for each eligible expense is required. Invoices must include a description of the materials or services purchased. A cost is eligible for the HOME-ARP Program only if the cost is necessary to the overall completion of the Project. If there is a disagreement between the Parties regarding whether an item was necessary to the overall completion, the final decision shall be made by the City. Documentation of eligible costs shall include a copy of the front and back of the cancelled check, bank statement, or credit card statement used in payment, reconciled to the applicable expense. c. When direct payment to the vendor is sought for services or materials, a copy of the applicable invoice or sales contract for each eligible expense is required. 2. The City shall, in its sole discretion, determine if the Verifying Documents or any portion of them are acceptable and in strict compliance with the purpose and laws stated herein and approve them for payment. If the City determines there are any errors in the Verifying Documents, the City shall notify the Subrecipient. The Subrecipient shall submit corrected Verifying Documents within ten (10) working days of receipt of the notice. Payment shall not be made for any Verifying Documents that contain errors, as determined by the City. 3. Upon determination by the City that Verifying Documents are approved, the City will initiate the payment process. The City reserves the right to delay any payment request for Verifying Documents containing errors until such errors are corrected to the satisfaction of the City. 4. If any costs are disallowed up to five (5) years after the expiration of this Agreement or until HUD closes out the Project, whichever occurs later, and the City is forced to reimburse the HOME-ARP Program or HUD, then the Subrecipient shall reimburse the City for the said costs. 5 5. Within ten (10) days after Project completion the SUBRECIPIENT shall submit the final request for payment for all eligible expenditures not previously invoiced. The City shall not be responsible for payments of any charges, claims, or demands of the Subrecipient not received within the said ten (10) to exceed a period of thirty (30) days, provided the delay in its submission is not caused by any fault or negligence of the Subrecipient. ARTICLE VII NOTICES Unless and to the extent otherwise provided in this Agreement, all notices, demands, requests for approvals, and other communications which are required to be given by either party to the other shall be in writing and shall be deemed given and delivered on the date delivered in person to the authorized representative of the recipient provided below, upon the expiration of five (5) days following the date mailed by Registered or Certified Mail, Postage Prepaid, Return Receipt Requested to the authorized representative of the recipient at the address provided below, or upon the date delivered by overnight courier (signature required) to the authorized representative of the recipient at the address provided below. Jes Prince 801 Main Street Beaumont, Texas 77701 ARTICLE VIII GENERAL COMPLIANCE The Subrecipient agrees to comply with all applicable Federal, State, and local laws and regulations which govern the funds provided under the Agreement. ARTICLE IX PUBLIC RECORDS The Subrecipient agrees to comply with all applicable Federal, State, and local laws and regulations which govern the funds provided under this agreement. 6 ARTICLE X RETENTION AND ACCESSIBILITY OF RECORDS A. The Subrecipient must establish and maintain sufficient records, as determined by the City, to account for the expenditure and use of HOME-ARP funds. B. Subrecipient shall give the City, the Comptroller General of the United States, or any of their duly authorized representatives access to and the right to examine all books, accounts, records, reports files, and other papers, things or property belonging to or in use by Subrecipient pertaining to this contract. Such rights to access shall continue as long as the records are retained by Subrecipient. The Subrecipient agrees to maintain such records in an accessible location. C. All records pertinent to this contract shall be retained by Subrecipient for five (5) years following the date of termination of this contract or submission of the final close -out report, whichever is later, with the following exceptions: 1. If any litigation, claim, or audit is started before the expiration of the five (5) hear period and extends beyond the five (5) year period, the records will be maintained until all litigation, claims, or audit findings involving the records have been resolved. 2. Records relating to real property acquisition or long-term lease shall be retained for a period equal to the useful life of any repairs made with HOME-ARP funds. ARTICLE XI INDEPENDENT CONTRACTOR Nothing contained in the Agreement is intended to or shall be construed in any manner as creating or establishing the relationship of employer/employee between the parties. The Subrecipient shall at all times remain an independent contractor with the respect to the services to be performed under this Agreement. The City shall be exempt from payment of all compensation insurance. ARTICLE XII AMENDMENTS Except as otherwise provided for herein, this Agreement may not be modified, amended or extended orally. This Agreement may be amended only by a written instrument execute by the governing bodies of both parties. The City and the SUBRECIPIENT may amend this 7 Agreement at any time provided that such amendments make specific reference to this Agreement and are executed in writing and approved by the governing bodies of each party. The City may, at its discretion, amend this Agreement to conform with Federal, State or local governmental guidelines, policies, or available funding amounts or for other reasons. If such amendments result in a change in the funding, the scope of services, or the schedule of activities to be undertaken as part of the Agreement, such modifications will be incorporated only by written amendments signed by authorized representatives from both the City and the Subrecipient. ARTICLE XIII SUSPENSION AND TERMINATION 1. Termination: a. Either party may terminate this Agreement without cause at any time by giving at least a thirty (30) day written notice to the other party of such termination. The City may terminate this Agreement with a cause immediately upon written notice to the Subrecipient. Cause shall include, but is not limited to, Federal, State, and local laws, rules, and regulations, default on any of the terms and conditions of this Agreement, or any substandard performance by the SUBRECIPIENT as defined herein. Substandard performance shall be any performance indicated by Verifying Documents but not reflected in the actual performance of the Project. In the event of substandard performance, the CITY shall notify the SUBRECIPIENT in writing of such substandard performance. The SUBRECIPIENT shall take corrective action within a reasonable time, but in no event later than forty-five (45) days from receipt of the notice from the City b In the event of any termination, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports, or other materials prepared by the Subrecipient under this Agreement shall, at the option of the City, become the property of the City, and the Subrecipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. c. In the event of termination, the City shall not make payment for any additional costs incurred after the effective date of termination. All work completed prior to the effective date of the termination may be reimbursed pursuant to the terms of the agreement, provided that all required documents are submitted to the City withing thirty (30) days of the date of termination. 8 ARTICLE XIV DOCUMENTATION / RECORD KEEPING / ADMINISTRATIVE REQUIREMENTS 1. Maintenance of Records a. The Subrecipient shall maintain all records required by Federal regulations specified in 2 CFR Part 200 that are pertinent to the project herein funded by the Allocated Sum. Such records shall include, but are not limited to: (1) Application requestion Project funding (2) Executed Subrecipient Agreement approving the Project, including any amendments to the Agreement. (3) Records providing a full description of each activity undertaken. (4) Records demonstrating eligibility of work performed to be paid by the Allocated Sum. (5) Records documenting the acquisition, improvement, use, or disposition of real property acquired or improved with the Allocated Sum, if applicable. (6) Records documenting compliance with the Fair Housing and Equal Opportunity components of the HOME Program, if applicable. (7) Financial records as required by 24 CFR 92.505, 2 CFR Part 200, and all Financial Management standards as specified in this agreement. (8) Copy of Request for HOME-ARP Reimbursement and Quarterly Performance Reports submitted as required herein. b. The Subrecipient shall maintain client data demonstrating client eligibility for name address, race or ethnic group, age, income level, head of household status (gender and marital status), Social Security number, number of bedrooms, tenant contribution, monthly gross rent, percentage of the median, size of household, type of contract, status, contract and date, any other basis for determining eligibility, amounts of rent and security deposit subsidies provided and calculations of the eligible amounts, actions undertaken to comply with equal opportunity and fair housing requirement, and any other applicable data the City may direct from time to time. Such information shall be made available to the City for review upon request. 9 c. Subrecipient will create, maintain, and allow inspection of records demonstrating the income of all clients served, using the annual income definition adopted by the City, in accordance with 24 CFR 5.609(b)(9) (Section 8 definition of household income) d Subrecipient will create, maintain, and allow inspection of records demonstrating all clients served are eligible for HOME-ARP assistance based on the requirements of the ARP and Section IV of the HOME-ARP Notice. All clients served must meet the criteria of the Qualifying Populations in the Section IV.A(1), (2), (3), and (4): (1) Homeless as defined in 24 CFR 91.5; (2) At-risk of homelessness, as defined in 24 CFR 91.5; (3) Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking as defined by HUD in 24 CFR 5.2003; (4) Other populations in which providing supportive services or assistance homelessness or would serve those with the greatest risk of instability as defined in Section IV.A (4) (1) and (2) of the HOME-ARP Notice. e. Subrecipient will create, maintain, and allow inspection of records demonstrating compliance with the conflict-of-interest requirement of 24 CFR 92.356. f. Subrecipient shall create, maintain, and allow inspection of records demonstrating compliance with debarment and suspension requirements in 2 CFR part 2424. g. Subrecipient will create, maintain, and allow inspection of records demonstrating compliance with affirmative marketing and minority outreach requirements of 24 CFR 92.351. h. Subrecipient will create, maintain, and allow inspection of records demonstrating compliance with the applicable uniform administrative requirements required by Section VII.D of the HOME-ARP Notice. i. Subrecipient will create, maintain, and allow inspection of records demonstrating compliance with records of emergency transfers requested under 24 CFR 2005 and 25 CFR 92.350 pertaining to victims of domestic violence, dating violence, sexual assault, or staling, including data on the outcomes of those requests. 10 j. Subrecipient will create, maintain, and allow inspection of records demonstrating that each household qualifying as homeless, records that meet the requirements in 24 CFR 576.500 (b)(1), (2), (3), or (4), as applicable. 1. Subrecipient will create maintain and allow inspection of records demonstrating that each 576.500 (c)(1) or (2), as applicable, and include the following documentation of annual income. (1) Income evaluation from containing the minimum requirements specified by HUD and completed by the Subrecipient; and (2) Source documents for the assets held by the household and income received over the most recent period for which representative data is available before the date of the evaluation (e.g., wage statement, unemployment compensation statement, public benefits statement, bank statement); (3) To the extent that the source documents are unobtainable, a written statement by the relevant third party (e.g., employer, government benefits administrator) or he relevant third party of the income the household received over the most recent period for which representative data is available; or (4) To the extent that the source documents and third-party verification are unobtainable, the written certification by the household of the amount of income the household received for the most recent period representative of the income that the household is reasonably expected to receive over the 3-month period following the evaluation. 2. Retention of Records: The Subrecipient shall retain all records pertinent to expenditures incurred under this Agreement for a period of five (5) years after the termination of all activities funded under this Agreement or after the resolution of all Federal audit findings, whichever occurs later. Records for nonexpendable property acquired with funds under this Agreement shall be retained for five (5) years after the final disposition of such property. Records for any displaced person must be kept for five (5) years after he/she received the final payment. 3. Access to Records: The City and the Comptroller General of the United States or any of their authorized representatives shall have the right of access to any pertinent books, documents, papers, or other records of grantees and subgrantees which are pertinent to the grant in order to make audits, examinations, excerpts, and transcripts. The right of access shall last as long as any record is required to be maintained. The Subrecipient, its employees, or agents shall provide access during the Term to all related records and documents for accounts placed with the Subrecipient by the City at reasonable times to the City, its employees, or agents. during normal business hours of 8:00 a.m. to 5:00 p.m. Central Standard Time. Monday 11 ARTICLE XV RECORD-KEEPING DISPLACEMENT, RELOCATION, AND REAL PROPERTY ACQUISITION Subrecipient shall create, maintain, and allow inspection of records demonstrating compliance with the requirements of 24 CFR 92.353 and the provisions of Section VII.F. of the HOME-ARP Notice regarding displacement, relocation, and real property acquisition, including but not limited to: 1. Project occupancy lists identifying the name and address of all persons occupying the real property on the date described in 24 CFR 92.353©(2)(i)(A) and occupying the property upon completion of the project. 2. Lists of all individuals or families occupying hotels and motels and other nonresidential properties acquired, rehabilitated, and/or demolished and newly constructed to become HOME-ARP NCS or HOME-ARP rental housing that qualify for assistance under the HOME-ARP Notices as members of a qualifying population, as well as records indicating whether such persons were assisted by the HOME-ARP program by the participating jurisdiction following the closure of the nonresidential properties because of the HOME-ARP activities. 3. Lists of all individuals or families occupying HOME-ARP NCS that were converted during the required use period that qualify for assistance under the HOME-ARP Notice, as well as records indicating whether moving costs or advisory services were provided as part of HOME-ARP administrative costs or under the HOME-ARP supportive services activity in Section VI.D of the HOME-ARP Notice, and records indicating whether such persons were assisted by the HOME- ARP program by the participating jurisdiction following the conversion of the HOME-ARP NCS units. ARTICLE XVI HOME-ARP TBRA REQUIREMENTS AND PROVISIONS SUBRECIPIENT shall disburse the Grant monies through a HOME-ARP TBRA program that SUBRECIPIENT shall design and administer in accordance with this Article and to the extent not provided otherwise in this Agreement, in compliance with all requirements under Section VI.C of the HOME-ARP Notice, all other applicable provisions of the federal regulations, and any other laws. 12 SUBRECIPIENT shall promulgate a written HOME-ARP TBRA program, including tenant-selection criteria and rental assistance contracts, and related administrative forms. As appropriate, the written program may adopt pertinent provisions of this Article by reference to a Section or sub-section without repeating them verbatim. The rental assistance contracts and other forms used to implement the HOME-ARP TBRA program shall meet the requirements for and 24 CFR Part 982. The TBRA program shall include the following requirements and provisions: 1. SUBRECIPIENTS shall use a waiting list to identify and prioritize eligible households for HOME-ARP TBRA. 2. SUBRECIPIENT 3. At all times while receiving HOME-ARP TBRA, the selected tenants must reside in, and the assisted lease premises must be located within Beaumont, Texas. 4. SUBRECIPIENT shall create and maintain records of compliance with the housing quality standards, lease terms (including copies of all executed leases), minimum tenant contributions, actions taken to affirmatively further fair housing, and all other requirements of the HOME-ARP TBRA program. 5. The Grant monies may not be used to further subsidize the rent of units already receiving another form of rent subsidy (i.e., public housing or Section 8). 6. The HOME-ARP TBRA program may include assistance with security deposits as provided in 24 CFR 92.209(j) and may not exceed the equivalent of two (2) months rent for the rental unit. Any refunds of security deposits upon the termination of a lease, or at any other time, may be paid to the tenant and need not be refunded to SUBRECIPIENT. 7. SUBRECIPIENT shall enter into a written rental assistance contract complying with 24 CFR 92.209 and 24 CFR 92.253 with each eligible tenant before disbursing rental or security deposit assistance funds. The term of each rental assistance contract must begin on the first day of the te termination of the lease. 8. Each lease must not be for less than one (1) year unless by mutual agreement of the tenant and the owner. NO lease may contain any of the following terms, and each lease must affirmatively negate all of these terms either in the body of the 13 lease or by means of an attach addendum that controls notwithstanding any contrary provision of the lease: a. Agreement by the tenant to be sued, to admit guilt, or to a judgement in favor of the owner in a lawsuit brought in connection with the lease. b. Agreement by the tenant that the owner may take, hold, or sell personal property of household members without notice to the tenant and a court decision on the rights of the parties. This prohibition, however, does not apply to an agreement by the tenant concerning the disposition of personal property remaining in the housing unit after the tenant has moved out of the unit. The owner may dispose of this personal property in accordance with the state law. responsible for any action or failure to act, whether intentional or negligent. d. Agreement of the tenant that the owner may institute a lawsuit without notice to the tenant. e. Agreement by the tenant that the owner may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense or before a court decision on the rights of the parties. f. Agreement by the tenant to waive any right to a jury trial. otherwise challenge in court a court decision in connection with the lease, and the tenant wins in a court proceeding by the owner against the tenant. The tenant, however, may be obligated to pay costs if the tenant losses. i. Mandatory supportive services Agreement by the tenant (other than a tenant in transitional housing) to accept supportive services that are offered. 9. Each lease must provide that the owner may not terminate the tenancy or refuse to renew the lease of the tenant except for serious or repeated violation of the terms and conditions of the lease; for violation of the applicable federal, state, or local law, for good cause Each lease must provide that to terminate or refuse to renew the tenancy, the owner must serve written notice upon the tenant specifying the grounds for the action of at least 30 days before the termination or the tenancy. 14 10. SUBRECIPIENT shall require each owner that is a party to a lease to adopt written tenant selection criteria that: a. Are consistent with the purpose of providing housing for very low-income and l ow-income households; b. Are reasonably related to the HOME-ARP TBRA program eligibility and the c. Give reasonable consideration to the housing needs of households that would have a federal preference under 24 CFR 92.209(c)(2); d. Provide for the selection of tenants from a written waiting list in the c chronological order of their application, insofar as is practicable; and e. Give prompt written notification to any rejected applicant of the grounds for any rejection. 11. Neither the City or SUBRECIPIENT shall be a party to any lease for which assistance is given under the HOME-ARP TBRA program. The compliance of any lease with the provisions of this Agreement shall not connote approval or endorsement of the lease by the City or by the Subrecipient but means only that the lease does not bar the tenant from qualifying for HOME-ARP TBRA. The HOME-ARP TBRA program shall process for cause under the terms of the lease. 12. The rent subsidy for any rental unit paid with Grant monies may not exceed the difference between the rent standard established by the City for the unit size and thirty percent (30%) of the monthly adjusted income of the family of the tenant, in accordance with 24 CFR 92.209(h)(1). The SUBRECIPIENT shall use FY 2022 Fair Market Rents by Unit Bedrooms for the City of Beaumont Metropolitan Area. This can be found as an attachment to this agreement in Exhibit C. 13. The rent to be paid under each lease must be reasonable, based on rents that are charged for comparable unassisted rental units. The City shall establish rents standards for various unit sizes in accordance with 24 CFR 92.209(h)(3) and shall advise SUBRECIPIEJNT of the rent standards applicable from time to time. 14. Housing for which assistance is received under the HOME-ARP TBRA program must meet and be maintained in accordance with the following standards: a. The housing quality standards in Section VI.C.9 of the HOME-ARP Notice; 15 b. Accessibility requirements in the regulations referenced in 24 CFR 5.105(a), which implement the Fair Housing Act and Section 504 of the Rehabilitation Act of 1973; and c. All applicable state and City housing codes and ordinances. 15. SUBRECIPIENT, shall conduct inspections of each rental unit before approving assistance under the HOME-ARP TBRA program and at least annually thereafter, during the term of the rental assistance contract to ensure these standards are met. If any rental unit for which HOME-ARP TBRA assistance is being given falls below these standards, the City shall promptly notify SUBRECIPIENT, the tenant, and the owner of the housing of the specific matters needing correction and shall give a reasonable time (generally ranging from twenty-four (24) hours for violations that are an imminent health or safety threat, to thirty (30) days for other problems) for the deficiencies to be corrected. If the deficiencies are not corrected within the time allowed, the HOME-ARP TBRA Grant monies shall be suspended for that rental unit until the deficiencies are corrected to the satisfaction of the City. This HOME-ARP TBRA contract may also be cancelled if the deficiencies continued unabated. 16. Each tenant selected to receive assistance must consent in writing for his or her files to be inspected, copied, and audited by the City, HUD, or any of their agents or employees, and must waive any confidentiality requirements that may otherwise be breached as a direct or indirect result of any such inspection, copying, or audit. 17. SUBRECIPIENT - ARP TBRA that have not already been verified by the City at the time of the application. The verification will be by means of third-party verification and review of primary documents provided by the applicant or applicant certification. ARTICLE XVIII AUDITS/MONITORING 1. In the event that the Subrecipient expends Seven-Hundred-Fifty Thousand and 00 Dollars ($750,000.00) or more in Federal awards in its fiscal year, the Subrecipient must have a single or program-specific audit conducted in accordance with the provisions of Title 2 Code of Federal Regulations (CFR) Part 200, as revised. In determining the Federal awards expended in its fiscal year, the Subrecipient shall consider all sources of Federal awards, including Federal resources received from the City. The determination of amounts of Federal awards expended should be in accordance with the guidelines established by Title 2 CFR Part 200, as revised. An audit of the Subrecipient conducted by the Auditor General in accordance with the provision 2 CFR Part 200, as revised, will mee the requirements of this part. 16 2. In connection with the audit requirements addressed in Paragraph 1 above, the Subrecipient shall fulfill the requirements relative to audit responsibilities as provided in 2 CFR Part 200, as revised. 3. If the SUBRECIPIENT expends less than Seven-Hundred-Fifty-Thousand and 00/100 Dollars ($750,000.00) in Federal awards in its fiscal year, an audit conducted in accordance with the provisions of 2 CFR Part 200, as revised, is not required. In the event that the Subrecipient expends less than Seven-Hundred-Fifty-Thousand and 00/100 Dollars ($750,000.00) in Federal awards in its fiscal year and elects to have an audit conducted in accordance with the provisions of 2 CFR Part 200, as revised, the cost of the audit must be paid from non-Federal resources. 4. In addition to reviews of audits conducted in accordance with 2 CFR Part 200, as revised, monitoring procedures may include, but not be limited to, on-site visits by the City and/or HUD; limited-scope audits as defined by 2 CFR Part 200, as revised; submittal and review of financial statements; and/or other procedures. By entering into this Agreement, the Subrecipient agrees to comply and cooperate with any monitoring procedures/processes deemed appropriate by the City and/or HUD. In the event the City and /or HUD determines that a limited-scope of the Subrecipient is appropriate, the Subrecipient agrees to comply with any additional instructions provided by the City and/or HUD to the Subrecipient regarding such audit. The Subrecipient further agrees to comply and cooperate with any inspections, reviews, investigations, or audits deemed necessary by the Chief Financial Officer or Auditor General. 5. Inspector General: In those instances where state funding is involved, the Subrecipient and its subcontractors must agree to cooperate with the inspector general in any investigation, audit, inspection, review or hearing. By entering into this Agreement, the Subrecipient certifies it understands and will comply with this provision. 6. If the subrecipient is not subject to the audit requirements found at 2 CFR Part 200 Subpart F, a financial report in accordance with FAS Statement No. 117, Financial Statement of Not-for-Profit Organizations, as amended, shall be submitted to the City within thirty (30) days after the end of its fiscal year. 7. Monitoring provides information for making an informed judgement about program effectiveness and management efficiency, as well as identifying internal weaknesses that may contribute to fraud or abuse. The monitoring procedures established for the Subrecipient may include, but are not limited to, on-site visits by the City or HUD; limited-scope audits as defined by 2 CFR Part 200, as revised, submittal and review of financial management statements as defined by FAS Statement No. 117, performance reports; and other procedures as determined necessary. 8. By entering into this Agreement, the Subrecipient agrees to comply and cooperate with any monitoring procedures/processes deemed appropriate by the City and/or HUD. In the event the City or HUD determines that more than a limited-scope audit of the Subrecipient is appropriate, the Subrecipient agrees to comply with any additional instructions provided by the 17 City or HUD to the Subrecipient regarding such audit. The Subrecipient further agrees to comply and cooperate with any inspections, review, investigations, or audits deemed necessary by the City, Chief Financial Officer, or Auditor General9. A copy of the audit or financial management report must be provided to the Community Development Department within thirty (30) days after receipt by the Subrecipient. ARTICLE XVIII PERFORMANCE, SUBCONTRACTS, AND AMENDMENTS 1. Performance Monitoring: The City shall monitor the performance of the Subrecipient against goals, performance standards, and requirements herein. Substandard performance, as determined by the City, in its sole and absolute discretion, shall constitute noncompliance of this Agreement. If such substandard performance is not corrected by the Subrecipient within a reasonable time period, as determined by the City, after being notified by the City of it, in accordance with Article XIII, contract suspension or termination procedures may be initiated and enforced in accordance with regulations set forth in 2 CFR Part 200, Subpart D, and Article XIII herein. In no case shall a reasonable period of time to begin the correction of substandard performance by shorter than seven (7) days or longer than ninety (90) days unless otherwise provided herein. Notwithstanding the foregoing, the City hereby agrees that any cure of any iates, or their successors or assigns) shall be deemed to be a cure by the Subrecipient and shall by accepted or rejected on the same basis is if made or tendered by Subrecipient. 2. Reporting Requirements: The Subrecipient will inform the monitoring agent secured by HUD that the City must receive a copy of all documents relating to the monitoring and compliance of the Project. 3. Laws: The Subrecipient shall not enter into any contracts or subcontracts in the performance of this Agreement without the written consent of the City. All contracts or subcontracts made by the Subrecipient to carry out the Project shall be made in accordance with all applicable Federal, State, and local laws, rules and regulations stipulated in this Agreement and in strict accordance with all terms, covenants, and conditions in this Agreecified by written contract or agreement and shall be subject to each article set forth in this Agreement. 4. Subcontract Monitoring: The Subrecipient shall monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. Such summaries and documents shall be submitted to the City with each Request for HOME Reimbursement and Quarterly Performance Report to be reported to HUD. 18 5. Prior City Approvals: The following includes, but is not limited to, activities that require the prior written approval of the City to be eligible for payments: a. All requests for proposals/qualifications, bid packages, proposed advertisements, and procurement documentation for services prior to award. b. The initiation of new activities not covered by this Agreement or changes in the location or the deletion of any activity/activities. c. Any service(s) or activity/activities other than those described in Article III above. d. Any proposed revisions to this Agreement. e. Requests to utilize remaining funds should there be a surplus after work is substantially completed. Requests must be made in writing and signed by an individual with signatory authority. ARTICLE XIX AWARD DELIVERY HOME-ARP Funds will be awarded as a grant pursuant to the terms of the Agreement. Subrecipient shall be required to enter into a Land Use Restrictive Agreement (LURA) for a period of 15 years, and such agreement shall be recorded in the Public Records of the City. The Allocated Sum shall be secured by a twenty (20) year deferred mortgage and promissory note on the real property on which the Project is located. ARTICLE XX REPAYMENT OF LOAN 1. All HOME-ARP funds are subject to repayment in the event the Project does not meet the requirements as outlined in this Agreement 2. It is understood that upon the completion of the Project, any HOME-ARP funds reserved but not expended under this Agreement will revert to the CITY. 3. Funds will remain a deferred loan for the period of twenty (20) years, at which time the loan may be forgiven or extended in the sole discretion of the City for another term. Sale of the property to another party may occur only with the approval of the City and the purchaser shall assume all obligations of the Subrecipient under this Agreement, the note and mortgage, and the deed covenants. Provisions in those documents will provide for the extinguishment of the requirements only in the event of a third-party foreclosure or deed in lieu of foreclosure. 19 ARTICLE XXI CONTRACT LIABILITY The City shall not be liable to any person, firm, or corporation who contracts with, or provides goods or services to, the Subrecipient in connection with the services as agreed to perform hereunder or for debts or claims accruing to such parties against the Subrecipient; and there is no contractual relationship either expressed or implied between the City and any other person, firm, or corporation supplying any work, labor, services, goods, or materials to the Subrecipient services to the City hereunder. ARTICLE XXll PROGRAM INCOME The Subrecipient shall record the receipt and expenditure of the Program Income, as defined in -funded Project. The use of Program Income by the Subrecipient shall comply with the requirements set forth in 24 CFR 92.503. The Subrecipient may use Program Income during the Term of this Agreement and shall reduce requests for additional funds by the amount of any such Program Income on hand. The Subrecipient shall submit a detailed accounting of the receipt and use of Program Income as indicated in Exhibit C, attached hereto and incorporated herein, in conjunction with quarterly reporting that is required. All unused Program Income with interest shall be returned to the city at the end of the Term. The City shall return these monies to HUD. ARTICLE XXlll REVERSION OF ASSETS Upon expiration or termination of this Agreement, the Subrecipient shall transfer to the city any Allocated Sum that has not been specifically allocated for the Project pursuant to this Agreement, as specified in 24 CFR 92.504(c)(2)(vii). 20 ARTICLE XXIV INDEMNIFICATION The Subrecipient shall defend, hold harmless and indemnify the City and all of its officers, agents, and employees, whether current or former, from and against any and all actions, xpenses of whatever kind of nature which the City may sustain, suffer, incur, or be required to pay by reason of the loss of any monies paid to the subrecipient resulting out of fraud, defalcation, dishonest, or failure of the Subrecipient to comply with the Housing and Community Development Act of 1974 and its regulations; or arising out of any act, action, neglect, or omission during the performance of this Agreement, any part thereof, or work performed hereunder, whether direct or indirect; or by reason maintenance or supervision of the property or work performed; or by reason of a judgement over and above the limits provided by the insurance required under Article XXV of this Agreement; or by any defect in the condition or construction of the Project if the Project was inspected and accepted by the Subrecipient; whether or not due to, or caused by negligence of the City or any of its agents and employees. Only a final adjudication judgement finding the City solely negligent shall excuse the performance of this provision by the Subrecipient. The Subrecipient shall pay all costs and fees related to this obligation and its enforcement by the City. This Article XXIV shall survive any termination, cancellation, or expiration of this Agreement. ARTICLE XXV INSURANCE 1. The Subrecipient shall procure and maintain, for the duration of this Agreement, insurance against claims for injuries to persons or damages to property which may arise from or y and any building, insurance shall be borne by the Subrecipient. 2. The Subrecipient shall not enter or occupy the Premises until it has obtained all insurance required herein and such insurance has been approved by the City as provided herein. 3. The Subrecipient shall furnish certificate(s) of insurance on the form required by the City to the City. The certificate(s) shall clearly indicate the Subrecipient has obtained insurance of the type, amount, and classification required for strict compliance with this Agreement and that no reduction in coverage or in limits, suspension, or cancellation of the insurance shall be effective without thirty (30) days prior written notice as provided below. The certificate(s) shall 21 be signed by a person authorized by that insurer to bind coverage on its behalf. The City reserves the right to require complete, certified copies of all required policies at any time. Each insurance policy required by this Agreement shall be endorsed to state that coverage shall not be suspended, voided, canceled, reduced in coverage or in limits, except after thirty (30) days prior written notice by Certified Main, Return Receipt Requested, has been given to the City to the attention of the City of Beaumont community Development Director. In the event the insurance coverage expires prior to the termination or end of this Agreement, a renewal certificate shall be issued thirty (30) days prior to the expiration date. Compliance with the foregoing requirements shall not relieve the Subrecipient of the liability and other obligations under this Agreement. Neither approval by the City or a failure to disapprove insurance certificates or policies furnished by the Subrecipient shall release the Subrecipient of full responsibility for all liability or its obligations under this Agreement. 4. All insurance policies shall be issued by responsible companies authorized to do Key Rating Guide, and shall be satisfactory to the City. All policies of insurance required by this Agreement shall be primary insurance with respect to the City, its officials, agents, and employees. Any insurance or self-insurance maintained by the City, its officials, agents, or employees shall be in excess of e All insurance policies required herein and all provisions hereof shall apply to all operations, activities, or use by the Subrecipient or by anyone employed by or contracting with the subcontractor, or anyone directly or indirectly employed by any of them complies with those deductibles or self-insured retentions must be declared to and approved by the City and are the responsibility of the Subrecipient. The minimum types and limits of coverage to be carried by the Subrecipient are as follows: : shall provide coverage for all employees. The coverage shall be for the statutory limits in compliance with the applicable State and Federal laws. The policy m liability with a limit of One Hundred Thousand and 00/100 Dollars ($100,000.00) for each accident. The insurer shall agree to waive all rights of subrogation against the City, its officials, agents and employees. b. Comprehensive General Liability: Shall include premises and/or operations, broad form property damage, independent contractor, contractual liability, and fire legal liability, and shall be written on an 22 - Subrecipient shall be obligated, by virtue of this Agreement, to maintain tail coverage in effect with no less limits of liability, nor any more restrictive terms and/or conditions, for a period of three (3) years from expiration or termination of this Agreement. c. Bodily injury and personal injury, including death: $1,000,000.00 each person; $2,000,000.00 aggregate; $1,000,000.00 each occurrence; $2,000,000.00 aggregate ARTICLE XXVI NONASSIGNABILITY The Subrecipient may not assign this Agreement without the prior written consent of the City. ARTICLE XXVII HEADINGS All articles and descriptive headings of paragraphs in this Agreement are inserted for convenience only and shall not affect the construction or interpretation hereof. ARTICLE XXVIII CONTRACT EXTENSION This agreement may be executed in whole or in part, and each fully executed part shall be deemed an original instrument. 23 ARTICLE XXVIX COMPLIANCE The Subrecipient agrees to comply with any City or State civil rights ordinances; Title XI of the Civil Rights Act of 1964, as amended; Title XIII of the Civil Rights Act of 1968, as amended; Section 109 of Title I of the Housing and Community Development Act of 1974; the Americans with Disabilities Act of 1990; the Age Discrimination Act of 1975; and Executive Orders 11063 and 11246, as amended by Executive orders 11375 and 12086. ARTICLE XXX UNIFORM ADMINISTRATIVE REQUIREMENTS The Subrecipient shall comply with 24 CFR 92.505, and adhere to accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. The Subrecipient shall administer the Project in conformance with Section VIII.D. of the HOME-ARP Notice, as amended. ARTICLE XXXI NONDISCRIMINATION The Subrecipient will not discriminate against any employee or applicant for employment because of race, color creed, religion, ancestry, national origin, sex, disability, other handicaps, age marital status, or status with regard to public assistance. To the extent Subrecipient has employees, the Subrecipient will take affirmative action to ensure that all employment practices prohibit such discrimination. Such employment practices include but are not limited to, the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, lay-off, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Subrecipient agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. ARTICLE XXXII REHABILITATION ACT OF 1973, SECTION 504 The Subrecipient agrees to comply with any Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 United States Code of Law (U.S.C.) 794) 24 which prohibits discrimination against the handicapped in any Federally assisted program. The City shall provide the Subrecipient with any guidelines necessary for compliance with that portion of the regulations during the term of this Agreement. ARTICLE XXIII LABOR STANDARDS The Subrecipient agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (48 CFR 22.405-1), the provisions of contract work hours and the Safety Standards Act (40 U.S.C. 3701, et seq. and 48 CFR 22.403-1, 22-403- --2; 18 U.S.C. 874 et seq.; 40 U.S.C 3141, et seq., formerly cited as 40 U.S.C. 276a, 327-333) and all other applicable Federal, State, and local laws and regulations pertaining to labor standards insofar as such acts apply to the performance of this Agreement. The Subrecipient shall maintain documentation that demonstrates compliance with all hour and wage requirements of this part. Such documentation shall be made available to the CITY for review upon request. ARTICLE XXXIV HUD ACT OF 1968, SECTION 3 1. Compliance with the provisions of Section 3 of the HUD ACT of 1968, the regulations set forth in 24 CFR Part 75, and applicable rules and orders issued hereunder prior to the execution of the Agreement shall be a condition of the Federal financial assistance provided under this Agreement and is binding upon the City, the Subrecipient, and any subcontractors. Failure to fulfill these requirements shall subject the City, the Subrecipient, and any subcontractors. Their successors, and assigns to those sanctions specified by the agreement through which Federal assistance is provided. The Subrecipient certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements. 2. The Subrecipient agrees to send to each labor organization or representative of workers with whom it has a collective-bargaining agreement or contract or understanding, if any, a notice r its commitments under the Section 3 clause, and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. 3. The Subrecipient will include the Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon finding that the contract is in violation of regulations issued by the City or the Federal government. The Subrecipient will not subcontract with any sub-contractor where it has notice or knowledge that the latter has been found in violation or regulations under 24 CFR Part 75 and will not let an subcontract unless the 25 subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these requirements. ARTICLE XXV HATCH ACT The Subrecipient agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or any extent engaged in the conduct of political activities in violation of 5 U.S.C. 1501 et seq. as subsequently amended. ARTICLE XXXVI CONFLICT OF INTEREST The subrecipient covenants that it presently has no financial interest and shall not acquire financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this Agreement. The Subrecipient further covenants that in the performance of this Agreement, not person having such a financial interest shall be employed or retained by the Subrecipient or subcontractor hereunder, except for services performed. These conflict-of-interest provisions apply to any person who is a person, agent, consultant, officer, or elected official or appointed official of the City or of any designated public agencies or SUBRECIPIENTS that are receiving funds under this agreement. ARTICLE XXXVII RELIGIOUS ORGANIZATION The Subrecipient agrees that funds provided under this Agreement will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CFR 5.109. ARTICLE XXXVIII LEAD-BASED PAINT The Subrecipient agrees that any construction or rehabilitation or residential structures, with assistance provided under this Agreement, shall be subject to the HUD Lead-Based Paint Regulations at 24 CFR 92.355. Such regulations pertain to all HUD-assisted housing and require that all owners, prospective owners, and tenants for properties constructed prior to 1978 be 26 properly notified that such properties may include lead-based paint. Such notification shall point out the hazards of lead-based paints and explain the symptoms, treatment, and precautions that should be taken when dealing with lead-based poisoning. ARTICLE XXXIV ENVIRONMENTAL CONDITIONS 1. Air and Water: Subrecipient agrees to comply with the following regulation insofar as they apply to the performance of this Agreement: a. Clean Air Act, 42 U.S.C 7401, et seq. b. Federal Water Pollution Control Act, as amended: 33 U.S.C. 1251, et seq., as amended; and 33 U.S.C. 1318, relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in the said Sections 114 and 308 and all regulations and guidelines issued thereunder. c. Environmental Protection Agency Regulations pursuant to 40 CFR Part 50, et seq., as amended. d. HUD Environmental Review Procedures (24 CFR Part 58) 2. Flood Disaster Projection: In accordance with requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001, et seq.), the SUBRECIPIENT shall obtain and maintain flood insurance under the National Flood Insurance Program for any activities located in an area identified by the Federal Emergency Management Act as having special flood zones. ARTICLE XL HISTORIC PRESERVATION The Subrecipient agrees to comply with the historic preservation regulations set forth in the National Historic Preservation Act of 1968, as amended (54 U.S.C. 300101, et seq. (formerly cited as 16 U.S.C. 4701), and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures, for protection of historic properties insofar as they apply to the performance of this Agreement. In general, this requires concurrence from the State Historic Preservation Officer for rehabilitation and demolition of all properties build fifty (50) years ago to assess how the activity could affect a historic property listed in or eligible for the National Register of Historic Places. 27 ARTICLE XLI CONTINUITY OF SERVICE 1. The subrecipient may not change the eligible use of the Units, the method of providing service by excluding properties or persons currently covered, sell or transfer the Units except in connection with the sale of the Project to an entity that assumes the Subrecipient obligations permission, until the expiration of this Agreement. 2. If the City and the Subrecipient determine, after consultation with the affected citizens, that it is appropriate to change the use of the property to a use which does not qualify under Paragraph 1 of this article, the Subrecipient may retain or dispose of the property for the changed use after the City HOME is reimbursed in the amount of the Allocated Sum. During the term of the Agreement, the Subrecipient shall give a first right of refusal to eligible nonprofit organizations for the purchase of the Unit at the current market value so that the Unit may continue to be occupied by eligible persons as set forth in the mortgage and note. 3. Following the reimbursement of the Allocated Sum in accordance with Paragraph 2 of this article, the property will not longer be subject to any Program requirements. ARTICLE XLII NONEXPENDABLE PROPERTY Any nonexpendable personal property acquired by the Subrecipient under this project shall be subject to the provisions of the Housing and Community Development Act of 1974 and its regulations, including but not limited to, the provisions on the use and disposition of property for a period of five (5) years after the purchase. ARTICLE XLIII REAL PROPERTY PROTECTIONS 1. The City may have inspections of the premises either performed by the City, or on its behalf for structural integrity and safety. 2. Other than as provided in Exhibit A, the Subrecipient shall not mortgage or otherwise encumber title to the said real property by utilizing the said real property as collateral for any type of lien, note, mortgage, debt obligation, or security agreement without prior written notification to the HOME Administrator. 28 ARTICLE XLIV MAINTENANCE OF PREMISES The Subrecipient is required to maintain the real property and structures located thereon in a condition that meets all current housing, safety, and health standards as required by all applicable federal, state, and local laws, rules and regulations. ARTICLE XLV MISCELLANEOUS 1. Entire Agreement: This Agreement represents the entire agreement between the parties and supersedes any and all prior agreements, negotiations, or understandings, written or oral, relating to the matters set forth herein. Prior agreements, negotiations, or understandings, if any, shall have no force or affect whatsoever on this Agreement. All parties hereto agree that if any part, term, or covenant of this Agreement is held to be illegal, unenforceable, or in conflict with any applicable Federal, State, or local laws or regulations, such part shall be severable with the remainder of this Agreement valid and enforceable. 2. Sovereign Immunity: Nothing in this agreement shall be construed in any way to waive the sovereign immunity of the City. 3. Applicable Law: This Agreement, when not governed by Federal law, shall be governed by and interpreted in accordance with the laws of the State of Texas. 29 APPROVED IN FORM ______________________________ Sharae Reed City Attorney CITY OF BEAUMONT ___________________________________ Kenneth R. Williams City Manager ATTEST: ___________________________________ Tina Broussard City Secretary Tender Loving Care Center for Children dba Legacy Community Development Corporation ___________________________________ Vivian Ballou, Executive Director ____________________________ Date 30 Exhibit A Tenant Based Rental Assistance Project $200,000.00 Assistance $160,000.00 Administration of Project $40,000.00 Remaining Balance $103,968.75 31 32 33 1 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Sharae Reed, City Attorney MEETING DATE:December 2, 2025 REQUESTED ACTION:Council to consider a resolution authorizing the City Manager to execute a Collective Bargaining Agreement (CBA) with the Beaumont Police Officers Association (BPOA). BACKGROUND City representatives and members of the BPOA met over three days to negotiate a new four-year CBA that includes enhanced incentives and a five percent wage increase each year of the agreement. Although the current contract does not expire until September 30, 2026, negotiating early allows for better planning and supports future recruitment efforts. FUNDING SOURCE General Fund. RECOMMENDATION Approval of the resolution. ATTACHMENTS BPOA CBA 2026-2030 2 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a resolution authorizing the City Manager to execute Change Order No. 4 to the contract with Norman Highway Constructors, Inc., for the Bridge Repair Project – Various Locations Citywide (REBID). BACKGROUND On November 19, 2024, by Resolution No. 24-302, City Council awarded a contract to Norman Highway Constructors, Inc., of Orange, in the amount of $1,679,207.00, for the Bridge Repair Project – Various Locations Citywide (REBID). Previous Change Order Nos. 1-3, in the amount of $21,231.96, are attached for your review. Proposed Change Order No. 4, in the amount of $64,999.52, is necessary to include new foundation to support the extension of the railing at the North Circuit Bridge. This bridge also needed an additional 10 cubic yards of concrete due to a void under the concrete rip rap. This change order also includes the replacement of 56 square yards of concrete sidewalk that needed to be removed in order to maintain proper alignment of the railing on the Phelan Blvd Bridge. If approved, Change Order No. 4 will result in a new contract amount of $1,765,438.48, and an additional twenty-seven (27) calendar days will be added to the contract. FUNDING SOURCE Certificates of Obligation. RECOMMENDATION Approval of the resolution. ATTACHMENTS Bridge Repair Project – Various Locations Citywide (REBID) CO4 3 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a resolution authorizing the City Manager to execute Change Order No. 4 to the contract with King Solution Services, LLC, of Houston, for the Grand Avenue & Magnolia Avenue Pipe Bursting Contract – Phase I. BACKGROUND On November 19, 2024, by Resolution No. 24-304, City Council awarded a contract to King Solution Services, LLC, of Houston, TX in the amount of $2,954,370.00 for the Grand Avenue & Magnolia Avenue Pipe Bursting Contract – Phase I. Previous Change Orders Nos. 1 – 3, in the amount of $397,017.00, are attached for your reference. Proposed Change Order No. 4, in the amount of $153,140.00, is necessary to incorporate Map 4 into the project plan set and to revise the associated quantities to reflect the inclusion of additional pipeline segments identified for rehabilitation. Map 4 will rehabilitate approximately 6,200 LF of deteriorated sanitary sewer lines and replace 27 manholes along Texas Avenue, Pine Street, Primer Street, and Simmons Avenue that impact the Primer Lift Station. An additional 70 calendar days are requested to complete this work. If approved, the new contract amount will be $3,504,527.00 FUNDING SOURCE Water Revenue Bonds. RECOMMENDATION Approval of the resolution. ATTACHMENTS Proposed Change Order No. 4 4 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Sharae Reed, City Attorney MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider an ordinance authorizing the acceptance of the proposed settlement of Texas Gas Service Company's (TGS or Company) 2025 base rate case. BACKGROUND TGS requested a total rate increase of $41.1 million annually, representing a 9.83% increase in non-gas revenues. TGS also requested to consolidate its three existing service areas into one statewide service area. The Company’s proposed rate increase would have a widely disparate impact between residential and non-residential customer classes, as well as within the residential classes, depending on their current service area. The proposed increase would go entirely to residential customers, whereas commercial, industrial, and other non-residential rate classes would receive rate decreases. In addition, residential customers in the West North Service Area would see increases of 24.5% to 27% over current rates, whereas residential customers in the Rio Grande Valley Service Area would see decreases of 5.8% to 21.9%. The impact on customers in the Central-Gulf Service Area, which includes all the cities in our coalition, is mixed. If approved, the average increase for Central-Gulf small residential customers would be $3.98 for usage of 17 Ccf per month, or an 8.9% increase over current rates. Large residential customers in the Central-Gulf Service Area using 46 Ccf per month would see an average decrease of $2.89 per month, which is a 3.7% decrease from current rates. The partial settlement in principle resolves all contested issues except the question of consolidating service areas. The parties are still litigating the consolidation issue, which will be decided by the Commission in January 2026. The Commission has a long-standing policy favoring consolidation of service areas, so we expect the Company’s consolidation request to be granted. Key terms of the proposed settlement include: A revenue requirement increase of $15 million, which is approximately 64% lower than the Company’s requested revenue requirement increase of $41.1 million. Both small and large residential customers in the current Central-Gulf Service Area are expected to have rate decreases if the Company’s consolidation request is approved. A 9.8% return on equity rather than the Company’s requested 10.4% return on equity. Revenue allocation such that no customer class will receive a rate decrease while other classes receive a rate increase. The pilot program for low-income customers will be withdrawn. The Company’s existing Share the Warmth program will be expanded to provide more assistance for low-income customers. The cost of this program will be shared between the Company, residential customers, and commercial customers. FUNDING SOURCE The reasonable expenses associated with rate cases are reimbursable by the Company. RECOMMENDATION Approval of the ordinance. ATTACHMENTS 5 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Sharae Reed, City Attorney MEETING DATE:December 2, 2025 REQUESTED ACTION:Council to consider a resolution adopting an ethics policy: Rules of Conduct for City Officials. BACKGROUND At the request of Mayor Pro Tem Turner with a second from Councilmember Durio, the City Attorney's Office drafted an ethics policy: Rules of Conduct for City Officials. The policy was presented the Council during a Work Session at the July 15 Council meeting. The Mayor has requested the policy be submitted to the City Council for adoption. FUNDING SOURCE Not applicable. RECOMMENDATION None. ATTACHMENTS Rules of Conduct for City Officials Rules of Conduct for City Officials Definitions Unless otherwise defined in this Article, the following words or phrases shall have the meanings described herein: Administrative Board: Any Board, commission, or other organized body established by the City Council or the City Charter, whose members are appointed or confirmed by the City Council and which has decision-making authority in a particular area of oversight or review; or created as a non-profit economic development corporation by the City Council under the authority of the City Charter or applicable law. Advisory Board: Any board, commission, or organized body that has not been delegated decision- making authority created by the City Council and whose members are appointed or confirmed by the City Council. Appointed City executive employee: Any City employee appointed directly by the City Manager and who reports directly to the City Manager. Appointed City officer: Any City employee appointed directly by the City Council and who is compensated as an employee of the City. City Official: The Mayor, a member of City Council, or a member of an Administrative or Advisory Board. Direct competitor: A business entity that provides a substantially similar service, set of services, or product within the same or substantially the same industry as another business entity. Employee: Any person employed by the City, either full or part-time, other than an independent contractor. Immediate Family: Those members of a person’s family within two degrees of consanguinity or affinity with that person. Unethical Behavior A.Conflicts of Interest 1.A City Official shall file an affidavit stating the nature and extent of his or her interest in a matter, and shall not participate in discussion or vote on any matter that will have an economic effect separate from its effect on the public for any of the following: a.The City Official; 1 b.The City Official’s outside employer or client; c.A member of the City Official’s immediate family; d.A public or private business entity for which the City Official or any member of the City Official’s immediate family serves in a policy- making position; or e.Any person having a relationship with the City Official such that it can be presumed that an economic effect would in any way benefit any of those classes of person or entity listed in (A)(1)(a-d). 2.A City Official shall not participate in any discussion or vote on a matter for which the Official, within the preceding twelve (12) months of the date of the vote, was required to file a conflicts disclosure statement under Texas Local Government Code Chapter 176. 3.A City Official shall not participate in any discussion or vote on a matter involving a business entity if: a.The City Official or their immediate family has a substantial interest in another business entity that has, within the preceding twelve (12) months of the date of the vote, had one or more business transactions with the business entity involved in the matter to be voted on; or b.The City Official or their immediate family has a substantial interest in another business entity that is a direct competitor with the business entity involved in the matter to be voted on. 4.Affidavits for conflict of interest filed pursuant to this Article shall be filed with the City Clerk before any vote on the matter or as soon as possible after the City Official becomes aware of the need to file the affidavit. 5.A City Official who is required to abstain from participation in a matter under this section or under state law shall mute their microphone while the matter is pending. a.If the matter is being discussed during an Executive Session, the City Official is required to abstain from participation and shall leave the room while the matter is being discussed. 2 6.The abstention of a City Official pursuant to this section or state law shall be recorded in the minutes of the meeting during which the abstention occurred. B.City Official prohibited from doing business with the City 1.Except as provided below, no City Official or their immediate family shall have any financial interest in any contract or transaction in which public funds would be received by the City Official, the City Official’s immediate family, or a business entity for which the City Official or their immediate family serves in a policy-making position. 2.This section does not apply to: a.A publicly traded business in which a City Official or a member of the City Official’s immediate family holds stock, if the aggregate interest among the City Official and their immediate family held is less than five percent (5%) of the value of the company; or b.The acquisition by eminent domain of an interest in land owned by a City Official. C.Disclosure of certain gifts to City Officials, officers, or executive employees 1.Except as provided below, a City Official or their immediate family who receives a gift of food, lodging, transportation or entertainment that reasonably appears to exceed $50.00 in value, either in a single gift or in the aggregate if from the same giver, shall file with the City Clerk within thirty (30) calendar days after receiving the gift or gifts a written disclosure statement containing the following information: a.A description of the gift or gifts of food, lodging, transportation, or entertainment that was received; b.The date or dates on which the gift or gifts were received; c.The name of the host who paid for, or provided, the gift or gifts; and d.A statement that the aggregate value of the gift of gifts is believed to exceed the sum of $50.00. 2.The requirement of subsection (C)(1) does not apply to a gift or other benefit conferred on account of kinship between the gift giver and the recipient. 3 3. A disclosure required under (C)(1) shall function as an affidavit of conflict of interest under subsection (A)(1) of this Article. If filed within twenty- four (24) months preceding a vote on a matter that in any way involves the gift giver, the recipient of the gift shall not participate in any discussion or vote on the matter and shall mute their mic or leave the room in which the meeting is taking place while the matter involving the gift giver is voted on or discussed. 4.This section does not supersede any gift disclosure requirements of any other state law, including election campaign filings. D.Appearance on behalf of the private interest of others 1.A City Official shall not appear before the City Council or any Administrative or Advisory Board for the purposes of representing the interest of any other person or entity. However, a City Council member may, as permitted by other law, appear to represent their own interests as a private citizen. E.Misuse and disclosure of confidential information 1.It is a violation of this Article for a City Official to violate Texas Penal Code §39.06, Misuse of Official Information. 2.A City Official shall not disclose to the public any information that is deemed confidential under any applicable law. F.Prohibited Political Activity 1.No City Official or candidate for City Council may meet with any employee of the City for any political campaign purposes while those employees are actively executing their official duties unless part of an approved City Council activity in which all City Officials or candidates have the ability to meet with those employees. 2.No City Official or candidate for City Council may make any attempt to influence or affect the execution of official duties of any employee of the City to the Official’s or candidates’ benefit or to the detriment of another City Official or other person running for election to City Council. 4 3.No City Official shall either directly or indirectly attempt to coerce any City employee to: a.Participate in any political activity relating to any party, candidate, or issue; or b.refrain from engaging in any lawful political activity. 4.This section does not apply to: a.The making of a general statement encouraging another person to vote in an election; b.A solicitation of contributions or other support that is directed to the general public, an association, or an organization. c.The acceptance of a freely made political contribution from a City employee that is not the result of a direct solicitation to that employee by the City Official. G.Other activities deemed unethical No City Official shall: 1.Use their official position to secure special privileges or exemptions for themselves or any other person; 2.Grant any special consideration to any citizen, individual, business organization, or group beyond that which is available to every other member of the public; 3.Directly or indirectly use or provide any information gained by reason of their official position for their own personal gain or the personal gain of another; 4.Engage in any outside activities which conflict with their official duties with the City or in which their official position gives an advantage over any direct competitors. 5.Engage in any outside activities which negatively impact their ability to fully perform their official duties or otherwise impact their independent judgment in executing their official duties to the benefit of the public; 6.Receive from any source other than the City any fee or compensation for the execution of their official duties excepted as may be otherwise provided by law. 5 7.Knowingly perform or refuse to perform any act in order to intentionally thwart the enforcement of any law of the City, state, or federal government. 8.Engage in any dishonest or criminal act, whether in their official or private capacity. Violations; Process A.The failure to comply with any of the standards of conduct set forth in this Article shall constitute grounds for expulsion, reprimand, removal from office, or discharge, as applicable. B.Disciplinary Process 1.In the case of a complaint against a City Councilmember, the matter shall be decided by a majority of the remainder of the Councilmembers at a public meeting. 2.In the case of a complaint against the Mayor, the matter shall be decided by a majority of the Councilmembers in a public meeting in a procedure presided over by a Presiding Officer who is not the Mayor. 3.In the case of members of Boards, Commissions, Committees, or other like bodies, the matter shall be decided by the City Council at a public meeting. 4.The decisions shall be final in the absence of bias, prejudice, or fraud. a.Members of the Council cannot vote to remove another member of the Council. 6 6 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a resolution authorizing the City Manager to execute Change Order No. 10 to the contract with ALLCO, LLC, of Beaumont, for the 48-Inch Pine Street Raw Water Line Project. BACKGROUND On July 18, 2023, by Resolution No. 23-193, City Council awarded a contract to ALLCO, LLC, of Beaumont, in the amount of $29,191,513.63. Previous Change Order Nos. 1 - 9 in the amount of ($8,120,908.47) are attached for your review. Proposed Change Order No. 10, is requested in the amount of $122,808.43. During construction of the 48-inch Raw Water Line along Pine Street, uncovering of existing infrastructure has determined a need to adjust the alignment of the new 48-inch line to avoid conflicts or detrimental impact on existing pipes. Additionally, review of the existing roadway curb & gutter, and in consideration with an upcoming 42-inch water line project on Pine St., recommendation is made to modify and correct the overall scope and quantities of curb and gutter removal and installation for this project. The proposed change order provides for: The removal of a section of storm sewer, and diversion of flow to an existing parallel storm pipe; Removal and replacement of a section of existing waterline that falls within the proposed excavation trench path; Credit for a section of waterline that originally was scheduled for removal and replacement, but on further inspection the line is deemed to be abandoned, and scope will only include its removal; and Adjustment of contract time for the removal of concrete road base, as per the scope of work outlined in CO-09. If approved, Change Order No. 10 will result in a new contract amount of $21,193,413.59 and add 60 additional calendar days to the contract time. FUNDING SOURCE Certificates of Obligation and CDBG/GLO. RECOMMENDATION Approval of the resolution. ATTACHMENTS Pine Street 48-Inch RWL CO10 7 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Miles Haynes, Special Assistant to the City Manager MEETING DATE:December 2, 2025 REQUESTED ACTION:Council to accept the BeWell Grant for the period of, January 1, 2026, to August 31, 2027 BACKGROUND The City of Beaumont has received grant funding to implement the Park Activation and Wellness Engagement Initiative, a two-year program designed to revitalize underutilized neighborhood parks and promote community wellness. The initiative will provide accessible, recurring activities that support physical fitness, mental well-being, and neighborhood engagement. It will also include targeted outreach and marketing to increase public awareness and participation. The approved funding totals $39,700 for Year 1 and $40,000 for Year 2, with an award period from January 1, 2026, through August 31, 2027. FUNDING SOURCE BeWell Grant RECOMMENDATION Accept the Grant award from BeWell ATTACHMENTS City of Beaumont – Park Activation and Wellness Engagement Initiative 1. Evidence-Based Interventions Community Fitness Programs Community-based Social Support for Physical Activity Places for Physical Activity Safe Routes to School/Safe Routes to Parks This initiative will utilize multiple evidence-based strategies to increase physical activity and overall well-being in Beaumont by activating local parks through inclusive events, outreach, and infrastructure support. 2. Problem Statement The City of Beaumont has an abundance of green spaces, but many remain underutilized. A 2024 Community Parks Survey revealed that while 40% of residents visit parks weekly, another 41% would visit more frequently if improvements were made, and 32% said current parks don’t meet their needs. The top three needs identified were: improved facilities, enhanced picnic spaces, and more active recreation opportunities. Key barriers include outdated infrastructure, lack of programming, and minimal awareness of available resources. Community demand is clear for more dynamic, inclusive, and consistent programming—especially for youth and families, who represent a large portion of the population (83% of survey respondents have children under 19). Parks have the potential to be engines of physical activity, mental health, and community connection. Proposal Overview The City of Beaumont proposes the Park Activation and Wellness Engagement Initiative to transform underutilized neighborhood parks into vibrant hubs for health and connection. This initiative will deliver inclusive, consistent programming that promotes physical activity, mental wellness, and community engagement while addressing accessibility and awareness through targeted marketing. Key components include: Community Collaboration: Engage local residents to help plan, promote, and guide park activations through a community engagement plan. Park Activations: Host pop-up festivals, youth and family activities, and provide mental health resources. Fitness Opportunities: Offer fitness classes in parks to encourage physical activity and increase park utilization. Assessment & Campaigns: Partner with Be Well Communities to conduct SOPARC assessments in Year 1 and collaborate with UT Health’s Center for Health Communication on the Beaumont Moves campaign for widespread promotion. 4. Proposed Project Plan Goals & Objectives: Activate neighborhood parks in each city ward with inclusive, free events. Promote physical activity and mental wellness through fitness classes and social programming. Increase awareness and park utilization through the Beaumont Moves campaign. Build community ownership by engaging residents and volunteers. Assess park usage and program impact using the SOPARC tool. Program Components: A. Community Events & Fitness Programs Quarterly “Be Well in the Park” Festivals: Interactive events featuring fitness classes, healthy cooking demos, mental health resources, play zones for children, and community resource booths. Monthly Fitness Classes: Diverse offerings such as walking groups, youth sports clinics, yoga, cardio drumming, and Zumba to encourage active living. B. Outreach & Engagement Park Champions Program: Recruit local volunteers to plan, promote, and support park activations, serving as trusted community advocates. Youth Ambassadors: Partner with Beaumont ISD to involve students in co-leading events and promoting wellness through peer engagement. C. Marketing & Communication Collaborate with Be Well Communities and UT Health Center for Health Communication to design and disseminate the Beaumont Moves campaign via social media, events, and local partnerships. D. Marketing & Promotion Collaborate with Be Well Communities and the UT Health Center for Health Communication to design and disseminate the Beaumont Moves campaign through social media, community events, and local partnerships. E. Park Utilization Assessment Work with Be Well Communities and the UTHealth School of Public Health to conduct SOPARC assessments, evaluating park usage and informing future activation strategies. 5. Organizational Capacity The City of Beaumont has extensive experience implementing community-based initiatives that promote health, wellness, and civic engagement. The City Manager’s Office, in collaboration with the Parks and Recreation Department, will lead this project. The Program Director will oversee coordination, fiscal management, and partnership development, while dedicated staff and interns will manage event logistics, volunteer engagement, and communications. The City has successfully managed large-scale programs, including the Beaumont Youth Advisory Council and community health initiatives, demonstrating strong project management and outreach capacity. Additionally, the City’s partnerships with local schools, nonprofits, and health organizations provide a trusted platform for reaching diverse community members. Leadership and department heads are fully committed to supporting the Be Well project through resource allocation and integration with city priorities. 6. Collaboration This initiative will leverage strong partnerships to ensure successful implementation: Be Well Communities: Provide guidance on community health strategies, assist with marketing, and support evaluation through SOPARC assessments. UTHealth School of Public Health: Conduct SOPARC data collection and assist in analyzing park usage trends to inform programming. UT Health Center for Health Communication: Co-design and disseminate the Beaumont Moves campaign to raise awareness and encourage participation. Beaumont ISD: Support recruitment of Youth Ambassadors, promote events to students and families, and assist with outreach for safe routes to parks. Letters of support from key partners will accompany this application. 7. Sustainability Overview The City of Beaumont is committed to sustaining the Park Activation and Wellness Engagement Initiative beyond the grant period. Leadership has integrated this project into the City’s strategic priorities for health and wellness and will allocate staff time and in-kind resources to maintain core components. To ensure long-term feasibility, the City will: Pursue additional funding through local foundations, state health programs, and corporate sponsorships. Incorporate fitness programming and community engagement strategies into the Parks and Recreation Department’s standard operations. Use SOPARC data and participation metrics to demonstrate impact and secure continued investment from stakeholders. This project builds on existing infrastructure and partnerships, positioning the City to maintain momentum and scale activities after funding ends. Budget Narrative Personnel: Personnel costs include a Program Director responsible for overall project coordination and fiscal oversight, a Community Liaison to recruit and manage volunteers and residents, and a Marketing Assistant to support event promotion and the Beaumont Moves campaign. Each staff member will dedicate a percentage of their time to planning, executing, and evaluating park activations, fitness classes, and outreach activities. Fringe benefits are included in the personnel calculation. Supplies: Funds are allocated for event materials such as tents, tables, signage, and fitness equipment (e.g., mats, light weights) to ensure accessibility and engagement at community events. Supplies and incentives will also cover educational/promotional materials and resources for residents during park activations. Consumables: Consumable costs include healthy snacks and water for participants, as well as printing flyers, posters, and promotional items to encourage attendance and reinforce health messages. These items are single-use and essential for both engagement and outreach. Mileage: Mileage is budgeted for staff travel to community meetings, park activations, and fitness class sites to ensure consistent program implementation across city wards. Costs are calculated at the standard IRS mileage reimbursement rate. Commented \[HG1\]: Mileage isn’t included in the budget. If you need to add it, please do so. Other: Other costs include marketing and advertising to promote the Beaumont Moves campaign through social media, community calendars, and local outlets. Additionally, funds are allocated for instructor fees for fitness classes and occasional guest speakers or entertainment to enhance event quality and encourage attendance. Commented \[HG2\]: This is also not included in the budget. Please add if needed. All costs are directly related to achieving the program’s objectives: increasing park utilization, promoting active living, and fostering community engagement. Indirect costs are not included in the budget. Monthly Monthly Frequency of Data Collection Sign-in sheetsMeeting calendar Data Source(s) Calendar City of BeaumontMiles Haynes Miles.Haynes@beaumonttexas.gov OBJECTIVES AND METRICS TABLE Number of community members engagedNumber of meetings heldSupplemental report: community engagement plan; findings from community member discussions Number of meetings with UT School of Public Health regarding SOPARC AssessmentNumber of parks where assessment is conducted Evaluation Metrics By August 31, 2026, collaborate with Be Well Communities and UT School of Public Health to support the SOPARC assessment within 6 Beaumont parks. Organization Proposal Contact Name: Email: Objectives By April 30, 2026, engage 8 local community members to help plan, promote, and support community park events. Be Well Communities™ Request for ProposalsObjective & Metrics Table Page 1 of 3 Quarterly monthlyMonthly Community calendars Community calendars Sign-in sheetsCalendar invites Year 2 Number of community park events Number of people in attendance Number of fitness classes hostedNumber of people in attendance per class Number of meetings attended with the CHC.Number of neighborhood park events advertised By August 31, 2026, coordinate 4 community park activation events thatpromote utilization of parks as a place for physical activity.By August 31, 2026, coordinate 4 fitness classes at community parks with a goal of up to 15-25 participants per class.By August 31, 2026, collaborate with the UT Center for Health Communication (CHC) on the development and dissemination of a Beaumont Moves campaign that will promote the usage of parks as a place for physical activity in Beaumont to expand awareness of bike and pedestrian connections to parks. Be Well Communities™ Request for ProposalsObjective & Metrics Table Page 2 of 3 MonthlyQuarterly monthlyQuarterly Sign-in sheetsMeeting calendarCommunity calendars Community calendars Sign-in sheetsSocial media, events, etc. Number of community members engagedNumber of meetings heldSupplemental report: findings from community member discussionsNumber of community park events Number of people in attendance Number of fitness classes hostedNumber of people in attendance per class Supplemental Material: quarterly marketing dissemination report (Number of printed materials on pedestrian connections to parks distributed; Number of social media ads; webpage analytics) By August 31, 2027, coordinate 4 community park activation events that will promote utilization of parks as a place for physical activity.By August 31, 2027, coordinate 6 fitness classes at community parks with a goal of up to 20-40 participants per class. By August 31, 2027, engage with 8 local community members to help plan, promote, and support community park events.By August 31, 2027, disseminate the Beaumont Moves campaign materials throughout Beaumont. Be Well Communities™ Request for ProposalsObjective & Metrics Table Page 3 of 3 8 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Bridgette Evick, CPA, Chief Financial Officer MEETING DATE:December 2, 2025 REQUESTED ACTION:Council to consider amending the ordinance containing the Master Fee Schedule for Environmental Health rates. BACKGROUND On October 21, 2025, City Council approved an amendment to the Master Fee Schedule. The Environmental Health rates were updated to comply with SB 1008 as presented to the City Council on October 7, 2025, by the Public Health Director. During the November 18, 2025, the Public Health Director held a workshop to discuss lowering inspection fees. This amendment will create tiered temporary permit fees for events scheduled: ten or more days, between five and ten days, and fewer than five days. Food permit fee tiers will be increased by seventy-five dollars and the one hundred fifty-dollar inspection fee will only be charged to non-permit holders. FUNDING SOURCE None RECOMMENDATION Approval of the amended ordinance. ATTACHMENTS Master Fee Schedule 9 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Demi Engman, Director of Planning and Community Development MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a request to amend Chapter 18, Article 18.03 Hotel Occupancy Tax, Section 28.03.023 Permitted Uses and adopt Section 28.04.009 Short-Term Rentals (STR) into the City of Beaumont Code of Ordinances. BACKGROUND The City of Beaumont requests approval to amend Section 28.03.023, “Permitted Uses,” and adopt Section 28.04.009, “Short-Term Rentals (STR),” into the City of Beaumont Code of Ordinances. The proposed ordinance establishes regulations to protect occupant safety, preserve neighborhood character, and ensure proper collection of hotel occupancy taxes (HOT) from all lodging operations, including short-term rentals, by introducing annual permitting, safety inspections, and operating standards consistent with best practices across Texas municipalities. If the City Council approves the ordinance, all STR owners and operators will be required to register with the City within sixty (60) days of the effective date of the ordinance. At a Joint Public Hearing held on November 17, 2025, the Planning Commission recommended 9:0 to approve the request to amend Section 28.03.023 Permitted Uses and adopt Section 28.04.009 Short-Term Rentals (STR) into the City of Beaumont Code of Ordinances. The Planning Commission does not oversee Chapter 18 of the City Code of Ordinances. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the ordinance. ATTACHMENTS STR Overview 10 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Demi Engman, Director of Planning and Community Development MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a Specific Use Permit to allow a duplex within an R-S (Residential Single-Family Dwelling) District for property located at 690 Shell Road. BACKGROUND Jaime Guzman, is requesting approval of a Specific Use Permit to allow the new construction of a duplex within the R-S (Residential—Single Family Dwelling) district located at 690 Shell Street. According to the Comprehensive Plan the property is located within a “Stable Area”, which is “characterized by good to excellent structural conditions and neighborhoods that are free from blighting influences, such as incompatible land uses, dilapidated buildings and a deteriorated or poor public infrastructure. Vacant parcels which may exist are good to excellent development sites.” The construction of a duplex appears to align with the comprehensive plan and would be a good opportunity for infill development. At a Joint Public Hearing held on November 17, 2025, the Planning Commission recommended 9:0 to approve the request for a Specific Use Permit to allow a duplex within an R-S (Residential Single-Family Dwelling) District for property located at 690 Shell Road, with the following condition: 1. Construction plans must meet all requirements by Water Utilities for water and sanitary sewer services, including any requirements of the City’s backflow, pre- treatment, and/or F.O.G. program. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the ordinance, with the following condition: 1.Construction plans must meet all requirements by Water Utilities for water and sanitary sewer services, including any requirements of the City’s backflow, pre- treatment, and/or F.O.G. program. ATTACHMENTS Staff Report Legal Description LEGAL DESCRIPTION FOR ORDINANCE PURPOSES Being all Lots 29-31 Block 2, and ½ adjacent ST, Shell Road Addition, Beaumont, Jefferson County, Texas containing .25 acres more or less. 11 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Demi Engman, Director of Planning and Community Development MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a Rezoning from R-S (Residential Single-Family Dwelling) District to GC-MD-2 (General Commercial Multiple- Family Dwelling-2) District for property located at 5430 Concord Road. BACKGROUND Stephanie Chatman is requesting a Rezoning for the 0.484- acre property at 5430 Concord Road from R-S (Residential-Single Family Dwelling) to GC-MD (General Commercial Multiple – Family Dwelling) or a more restrictive zoning district. According to the Comprehensive Plan the property is located within a “Stable Area”, which states, “characterized by good to excellent structural conditions and neighborhoods that are free from blighting influences, such as incompatible land uses, dilapidated buildings and a deteriorated or poor public infrastructure. Vacant parcels which may exist are good to excellent development sites.” The existing residential zoning district and existing surrounding uses align with the Comprehensive Plan. The property previously operated as a beauty salon and professional tax service. In 2019, the structure sustained substantial damage from a fire and was subsequently demolished by the owner. City staff has had multiple discussions with the property owner in the past regarding potential redevelopment of the site; however, no formal application was submitted until now. The owner intends to construct and operate a combined tax and insurance office at this location if the rezoning is approved. If approved, this Rezoning request could result in “spot zoning”, by introducing a higher density, commercial use into a predominantly single-family residential area of Concord Avenue. Approval of this request may violate Chapter 211 of the Texas Local Government Code. Planning staff recommended denial of the request. At a Joint Public Hearing held on November 17, 2025, the Planning Commission recommended 9:0 to approve the request for a Rezoning from R-S (Residential Single-Family Dwelling) District to GC-MD-2 (General Commercial Multiple-Family Dwelling-2) District for property located at 5430 Concord Road. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the ordinance. ATTACHMENTS Staff Report Legal Description LEGAL DESCRIPTION FOR ORDINANCE PURPOSES .ĻźƓŭ ƩğĭƷ ЊЉЎ tƌğƷ 5ЋЋͲ C͵ .źŭƓĻƩͲ .ĻğǒƒƚƓƷͲ WĻŅŅĻƩƭƚƓ /ƚǒƓƷǤͲ Ļǣğƭ ĭƚƓƷğźƓźƓŭ ͵ЍБЍ ğĭƩĻƭ ƒƚƩĻ ƚƩ ƌĻƭƭ͵ 12 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Demi Engman, Director of Planning and Community Development MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a Rezoning from A-R (Agricultural-Residential) District to R-S (Residential Single-Family Dwelling) District for property located at 12430 Keith Road. BACKGROUND Faust Engineering and Surveying, Inc., on behalf of property owner Jeff Akhtar, is requesting a Rezoning for 1.03- acres more or less located at 12430 Keith Road. Mr. Akhtar seeks to change the zoning from A-R (Agricultural-Residential) to a R-S (Residential Single-Family Dwelling) District to divide a singular lot into three residential lots for the existing subdivision. According to the Comprehensive Plan the property is located within a “Low Density Rural Area”, which are “areas where development at urban densities is either undesirable, inappropriate, or the provisions of urban services and facilities are determined to be economically unjustifiable. Such areas should be restricted to low development densities and limited as to type of use based on the degree of environmental impact resulting from that use. Generally, these areas are intended for very low density uses, such as large tract residential uses, recreational camps, small farmsteads and limited agricultural uses. Commercial, light industrial, and resource extraction operations should be limited to very low development densities provided their environmental impacts are minimal or can be made minimal.” The proposed residential zoning district and existing surrounding uses appear to align with the intent of the Comprehensive Plan. At a Joint Public Hearing held on November 17, 2025, the Planning Commission recommended 9:0 to approve the request for a Rezoning from A-R (Agricultural-Residential) District to R-S (Residential Single-Family Dwelling) District for property located at 12430 Keith Road. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the ordinance. ATTACHMENTS Staff Report Legal Description LEGAL DESCRIPTION FOR ORDINANCE PURPOSES Being Lot 2, Akhtars at Keith, Beaumont, Jefferson County, Texas, containing 1.010 acres more or less 13 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Demi Engman, Director of Planning and Community Development MEETING DATE:December 2, 2025 REQUESTED ACTION:Council consider a Rezoning from R-S (Residential Single-Family Dwelling) District to GC-MD-2 (General Commercial Multiple- Family Dwelling-2) District for properties located at 3209, 3211 and 3213 Shannon Avenue. BACKGROUND Kyle Mulvey, of Pape-Dawson, is requesting approval of a Rezoning from R-S (Residential- Single Family Dwelling) District to GC-MD (General Commercial-Multiple Family Dwelling) or a more restrictive zoning district, for the properties located at 3209, 3211 and 3213 Shannon Avenue. The intent of the Rezoning is to allow for commercial development of a quick service restaurant. According to the Comprehensive Plan the property is located within a Conservation Revitalization Area “these are built up areas where a significant portion of the area is experiencing influences such as incompatible land uses, dilapidated and derelict structures. A decline in population and in the number of housing units and businesses. Immediate actions are needed to prevent continued deterioration and to reverse and repair these conditions.” Commercial development along this corridor is appropriate, with its proximity to Lamar University, and connection from State Highway Spur 380, also known as Martin Luther King Junior Parkway. It should be noted this site is in close proximity to existing residential homes to the west and south. At a Joint Public Hearing held on November 17, 2025, the Planning Commission recommended 7:0:2 to approve the request for a Rezoning from R-S (Residential Single-Family Dwelling) District to GC-MD-2 (General Commercial Multiple-Family Dwelling-2) District for properties located at 3209, 3211 and 3213 Shannon Avenue. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the ordinance. ATTACHMENTS Staff Report Legal Description LEGAL DESCRIPTION FOR ORDINANCE PURPOSES Being all of Lots 4, 5 and 6, Block 2, South End Addition, Beaumont, Jefferson County, Texas containing .482 acres more or less. PUBLIC HEARING Council to conduct a Public Hearing to receive comments regarding a Tax Abatement with Beaumont Bulk Solution LLC, (BBS) 14 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Chris Boone, Assistant City Manager, Community Services MEETING DATE:December 2, 2025 REQUESTED ACTION:Council to consider a resolution authorizing the City Manager to enter into a Tax Abatement Agreement with Beaumont Bulk Solution LLC (BBS). BACKGROUND The city was recently approached by the Port of Beaumont and Beaumont Bulk Solution LLC (BBS) requesting consideration of a Tax Abatement Agreement. Attached is the amended Tax Abatement Agreement from Beaumont Bulk Solution LLC (BBS), outlining their proposal. The project would result in an estimated $135 million with up to 140 new, permanent direct and indirect full-time employees and 141 construction jobs. In addition, the possible construction of a barge dock would add an additional $23 million to the investment. The proposed abatement agreement would result in an abatement of City taxes on the new improvements in the amount of 100% for 10 years. All area taxing entities have been notified of the proposed agreement. The company will pay a total of $600,000 in three equal installments of $200,000 per year, beginning the year the project is completed and begins commercial operations. FUNDING SOURCE Not applicable. RECOMMENDATION Council to conduct the Public Hearing and approve the resolution. ATTACHMENTS Abatement Application Abatement Agreement Rev D TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN THE PROJECT CEMENT REINVESTMENT ZONE This Tax Abatement Agreement (hereinafter referred to as "the Agreement") is made, entered, and executed between The City of Beaumont, Texas (hereinafter referred to as the "CITY"), and Beaumont Bulk Solutions LLC, (hereinafter referred to as "OWNER"), the owner of taxable property in Beaumont, Jefferson County, Texas, located in the Project Cement Reinvestment Zone as described below ("Project Cement Reinvestment Zone"). I.AUTHORIZATION This Agreement is authorized by the Texas Property Redevelopment and Tax Abatement Act, Tax Code, Chapter 312, V.T.C.A., as amended, and by authorization of the City following the designation of the Project Cement Reinvestment Zone. II.DEFINITIONS 1.As used in this Agreement, the following terms shall have the meanings set forth below: a.The "2025 Certified Appraised Value" means the January 1, 2025 value of the property within the Reinvestment Zone, as certified by the Jefferson County Appraisal District as of that date and described in Paragraph 3 and Exhibit 8. b."Improvements" means the buildings or portions thereof and other improvements, including fixed machinery, equipment and process units, used for commercial or industrial purposes that are constructed by OWNER on the property after December 31, 2025. c."Construction Phase" means a material and substantial improvement of the property which represents a separate and distinct construction operation undertaken for the purpose of constructing the Improvements. The period of Construction Phase ends when commercial operation of the New Facility commences as defined by the completed installation of constructed Eligible Property that serves the purpose for which it is designed. d."Abatement" means the full or partial exemption from ad valorem taxes of certain property in a Reinvestment Zone designated for economic development purposes. e.“Abatement Period” means the consecutive period of calendar years, as specified in this Agreement, during which the Project is entitled to receive the ad valorem tax abatements granted herein, commencing on January 1 of the first tax year following the date of Completion and the commencement of Commercial Operations, and ending on the last day of the final tax year for which such abatements are granted. 1 Rev D f."Abatement Period Notice" has the meaning given in Section IV. "Eligible Property" means the buildings, structures, g.fixed machinery, equipment and process units, construction in progress and Improvements necessary to the operation and administration of the New Facility. h."New Eligible Property " means Eligible Property, the construction of which commences subsequent to the date of execution of this Agreement. A list of the New Eligible Property is set forth in the Application for Tax Abatement originally filed by OWNER, within the City of Beaumont, Texas ("the Application"), which is incorporated herein by reference and made a part hereof. During the Construction Phase of the New Eligible Property, OWNER may make such change orders to the New Eligible Property as are reasonably necessary to accomplish its intended use. i."Ineligible Property" is fully taxable and ineligible for tax abatement and includes land, supplies, inventory, housing, vehicles, improvements for the generation or transmission of electrical energy not wholly consumed by a new facility or expansion; any improvements, including those to produce, store or distribute natural gas, fluids or gasses, which are not integral to the operation of the facility; deferred maintenance, property to be rented or leased, property which has a productive life of less than ten years, or any other property for which abatement is not allowed by state law. j."Affiliates" of any specified person or entity means any other person or entity which, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under direct or indirect common control with such specified person or entity. For purposes of this definition , "control" when used with respect to any person or entity means (i) the ownership, directly or indirectly, or fifty percent (50%) or more of the voting securities of such person or entity, or (ii) the right to direct the management or operations of such person or entity, directly or indirectly, whether through ownership (directly or indirectly) of securities, by contract or otherwise, and the terms "controlling" and "controlled" have meanings correlative to the foregoing. 2.The Tax Abatement Policy for granting tax abatements in a reinvestment zone created in Beaumont, Jefferson County, Texas, which was adopted via Resolution No. 24-223 by the City Council of the City of Beaumont September 3, 2024, is incorporated herein by reference, together with any applicable amendments, except however, any definitions contained herein shall control and be applicable to this Agreement. Ill.SUBJECT PROPERTY 3.The Reinvestment Zone is an area within Beaumont, Jefferson County, Texas, 2 Rev D comprising approximately 11.29 acres of land. The Project Cement Reinvestment Zone was designated by order of the Commissioners’ Court of Jefferson County, Texas pursuant to Sec 312.401 of the tax code, dated TBD, a copy of which is attached hereto as Exhibit C and is hereby incorporated. The 2025 Certified Appraised Value was unavailable at the time of this agreement. The agreement is to be supplemented with the 2025 Certified Appraised Value when available. The most recent certified appraised value is as follows: 2024 Certified Appraised Value: Land Only$661,279 Improvements$937,500 Personal Property$0 (includes Inventory) The 2025 Certified Appraised Value is subject to change based upon final certification of the values by Jefferson County Appraisal District. Upon certification, by consent of the parties, the 2025 Certified Appraised Value will be attached to Exhibit B. IV.VALUE AND TERM OF AGREEMENT 4.OWNER anticipates this project will entail the construction of a Phase 2 barge dock, with an investment of $15.5 million and retain the existing jobs from Phase 1 of the project. OWNER shall construct the PROJECT with an estimated investment of not less than $15.5 million for the Phase 1 cement import terminal. The construction of the barge dock is subject to market conditions and may commence 5 years following commercial operations of the Phase 1 terminal. Phase 1 will be subject to a separate agreement. In order to incentivize construction of both phases in the City of Beaumont, the CITY has developed a tax abatement schedule where OWNER will receive the benefit of a tax abatement for each phase of the project except that the abatement term for any individual phase shall not exceed ten (10) years. Each phase will be assigned its own individual tax account by the Jefferson County Appraisal District and be subject to its own agreement. The Term of the Abatement pursuant to this Agreement (the “Abatement Term”) shall be a period of ten (10) consecutive tax years beginning on January 1 of the tax year following completion of the project, as specified by OWNER in a written notice to the CITY ("Abatement Period Notice"), unless sooner terminated pursuant to other provisions of this AGREEMENT. 4 Rev D CITY will request that the Jefferson Central Appraisal District establish discrete account numbers for each unit to facilitate efficient administration of this Agreement. In each year that this Agreement is in effect, the amount of abatement shall be an amount equal to the percentage indicated below. The appraised value, as defined in the Property Tax Code, of New Eligible Properties comprising each phase shall be abated in accordance with the following scale which is also found in Exhibit D: (Exact tax years are subject to Abatement Period Notice from OWNER to CITY) PHASE 2 – BARGE DOCK PROJECTED CONSTRUCTION START: Q1-2031 INVESTMENT: $15.5 MILLION ABATEMENT PROJECTED PERCENTAGE YEAR TAX YEAROF VALUE ABATED 12032100% 22033100% 32034100% 42035100% 52036100% 62037100% 72038100% 82039100% 92040100% 102041100% TAXABILITY V. 5.During the period that this tax abatement is effective ("abatement period"): 1.The value of Ineligible Property shall be fully taxable, subject to any exemptions available by statute; 2.The appraised value, as defined in the Property Tax Code, of New Eligible Propertyshall be abated as set forth above under the section entitled "VALUE AND TERM OF AGREEMENT." VI.CONTEMPLATED IMPROVEMENTS 6.As set forth in the Application, which is incorporated herein for all purposes, OWNER represents that it will construct a Phase 1 import terminal for cementitious materials, with an investment of $135 million and a potential Phase 2 barge dock, with an investment of $15.5 million. During the Construction Phase, OWNER may make such change orders to the project as are reasonably necessary. All Improvements shall be completed in accordance with the Application 5 Rev D and all applicable laws, ordinances, rules, or regulations. OWNER agrees to make bidding information available to qualified local contractors, vendors, manufacturers and labor and to conduct pre-bid meetings from time to time with potential local bidders and suppliers of services and materials for the project. VII.EVENTS OF DEFAULT 7.During the abatement period covered by this Agreement, the CITY may declare a default hereunder by OWNER if OWNER (i) fails to commence construction by December 31, 2033 the “Construction Commencement Date”, (ii) fails to construct Phase 2 of the New Facility or (iii) fails to comply with any of the material terms of this Agreement, or (iv) if any representation made by OWNER in this Agreement is false or misleading in any material respect. OWNER shall have the option to request, at least ninety (90) days prior to the then-current Construction Commencement Date, one-year extension(s) to the then-current Construction Commencement Date, with approval from the CITY of such request not to be unreasonably withheld or delayed. 8.If the CITY declares that OWNER is in default of this Agreement, the CITY shall notify OWNER in writing. If such default is not cured within sixty (60) days from the date of such notice ("Cure Period"), then this Agreement may be terminated. In the case of a default for causes beyond OWNER's reasonable control which cannot with due diligence be cured within the Cure Period, the Cure Period shall be deemed extended if OWNER (i) shall notify the CITY of OWNER's intention to institute steps reasonably necessary to cure such default, (ii) shall proceed to cure such default, and (iii) shall submit a proposed schedule for the completion of the New Facility, including the estimated date for completion of the New Facility, a reasonable explanation concerning the reason for the delay, and a reasonable estimate of the overall percent of the New Facility that is completed as of the date of such notice. 9.In the event OWNER (i) allows its ad valorem taxes on the New Facility to become delinquent or fails to timely and properly follow the legal procedures for the protest and appeal of the ad valorem taxes on the New Facility or (ii) defaults under this Agreement and fails to cure, this Agreement may then be terminated. In the event of termination of this Agreement pursuant to the provisions of this paragraph, all taxes previously abated by virtue of this Agreement will be recaptured and paid within sixty (60) days of the termination, together with penalties and interest as required by the Texas Property Tax Code. 6 Rev D 10.In the event the New Facility is completed and begins commercial operations, but subsequently discontinues operations for any reason excepting fire, explosion, or other casualty, accident, or natural disaster, force majeure or governmental mandate, for a period of one (1) year during the abatement period, then this Agreement shall terminate subject to the City providing notice and an opportunity to cure pursuant to Section 8. In the event of termination pursuant to the provisions of this paragraph, the abatement of the taxes for the calendar year during which the New Facility no longer operates shall terminate, but there shall be no recapture of prior years' taxes abated by this Agreement. The taxes otherwise abated shall be paid to the CITY prior to the delinquency date for such year. In no event shall OWNER be required to pay such taxes within less than sixty (60) days of the termination. VIII.ADMINISTRATION 11.This Agreement shall be administered on behalf of the CITY by its City Manager. Upon completion of the New Facility, the CITY Manager shall annually evaluate the New Facility to ensure compliance with this Agreement. 12.The Chief Appraiser of the Jefferson County Appraisal District is required to annually determine (i) the taxable value pursuant to the terms of this abatement of the real and personal property comprising the Project Cement Reinvestment Zone and (ii) the full taxable value without abatement of the real and personal property comprising the Project Cement Reinvestment Zone. The Chief Appraiser is required to record both the abatement taxable value and the full taxable value in the appraisal records. The full taxable value listed in the appraisal records shall be used to compute any recapture. Each year OWNER shall cooperate with the Chief Appraiser and furnish him or her with information reasonably requested pursuant to Chapter 22, Tax Code, V.T.C.A. Such information shall also be provided to the CITY to facilitate evaluation for compliance with this Agreement. 13.If after notice of default and failure to cure, the CITY terminates this Agreement, it shall provide OWNER written notice of such termination. In the event of termination, OWNER may file suit in the Jefferson County District Court appealing termination within ninety (90) days after receipt from the CITY of written notice of termination. If an appeal is filed, OWNER shall remit to the CITY within sixty (60) days after receipt of the notice of termination, any recaptured taxes as may be payable during the pendency of the litigation under Section 42.08, Tax Code, V.T.C.A. If the final determination of the appeal increases OWNER tax liability, OWNER 7 Rev D shall pay the additional tax to the CITY pursuant to Section 42.42, Tax Code, V.T.C.A. If the final determination of the appeal decreases OWNER tax liability, the CITY shall refund to OWNER the difference between the amount of tax paid and the amount of tax for which OWNER is liable together with interest pursuant to Section 42.43, Tax Code, V.T.C.A. IX.ASSIGNMENT 14.OWNER may assign this Agreement to an Affiliate without the written consent of the CITY, provided that OWNER shall provide written notice of such assignment to the CITY. Except as provided in the immediately preceding sentence, OWNER may assign this Agreement with the written consent of the CITY, which consent shall not be unreasonably withheld, delayed or conditioned. Any assignment shall provide that the assignee shall irrevocably and unconditionally assume all the duties and obligations of the assignor upon the same terms and conditions as set out in this Agreement. No assignment shall be approved if OWNER or the assignee is delinquent in ad valorem taxes due the CITY. X.NOTICE 15.Any notice required to be given under the provisions of this Agreement shall be in writing and shall be served when it is deposited, enclosed in a wrapper with the postage prepaid thereon, and by registered or certified mail, return receipt requested, in a United States Post Office, addressed to the CITY or OWNER. If mailed, any notice shall be deemed to be received three (3) days after the date of deposit in the United States Mail. Unless otherwise provided in this Agreement, all notices shall be delivered to the following addresses: To OWNER: OWNER: Beaumont Bulk Solutions LLC c/o Terra Aggregates LLC 3005 S Lamar Blvd, STE D109, #446, Austin, TX 78704 Attn: Nasser A. Ahmad, CEO & Co-Founder 8 Rev D Beaumont Bulk Solutions LLC c/o River Cement Sales Company 100 Brodhead Road, Suite 230 Bethlehem, PA 18017 Attention: Chief Financial Officer Beaumont Bulk Solutions LLC c/o River Cement Sales Company 100 Brodhead Road, Suite 230 Bethlehem, PA 18017 Attention: General Counsel With a copy to: Megan Gallien CFO Griffith Moseley, Johnson & Associates, Inc. 2901 Turtle Creek Drive, Suite 445 Port Arthur, TX 77642 To the CITY:Kenneth Williams City Manager 801 Main Street Beaumont, TX 77701 Sharae Reed City Attorney 801 Main Street Beaumont, TX 77701 Chris Boone Director of Planning & Community Development 801 Main Street Beaumont, TX 77701 Either party may designate a different address by giving the other party ten (10) days written notice. 7 Rev D 9 Rev D XI.AUTHORITY 16.Each of the parties hereto represents and warrants to the other party that (i) it has all requisite power and authority to execute and deliver, to perform its obligations under and to consummate the transactions contemplated by this Agreement and (ii) the execution and delivery of this Agreement, the performance of its obligations under and the consummation by each party of the transactions contemplated by this Agreement have been duly authorized by all requisite corporate authority on the part of OWNER and by all requisite governmental authority on the party of the CITY and (iii) upon execution and delivery of this Agreement, this Agreement will constitute valid and binding legal obligations of such party. XII.EFFECTIVE DATE 17.This Agreement may be executed in counterparts and the effective date of the Agreement shall be the date the CITY executes this Agreement, so authorizing, on the date of the countersignature hereto by the Manager of the City of Beaumont on this__________day of , 2025 (“Effective Date”). 9 Rev D 9 Rev D XIII.MISCELLANEOUS 18.In the event any section, subsection, paragraph, sentence, phrase or word herein is held invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and shall be read as if the parties intended at all times to delete said invalid section, subsection, paragraph, sentence, phrase or word. 19.The CITY agrees to record certified copy of this Agreement in the Deed Records of Jefferson County, Texas. 20.This Agreement shall be construed under the laws of the State of Texas. Venue for any action under this Agreement shall be the State District Court of Jefferson County, Texas. 21.This Agreement shall be subject to change, modification or, except in the event of default which has not been cured as provided herein, termination, only with the mutual written consent of the CITY and OWNER. 22.SEVERABILITY In the event any provision of this AGREEMENT is illegal, invalid, or unenforceable under present or future laws, then, and in that event, it is the intention of the Parties hereto that the remainder of this AGREEMENT shall not be affected thereby, and it is also the intention of the Parties to this AGREEMENT that in lieu of each clause or provision that is found to be illegal, invalid, or unenforceable, a provision be added to this AGREEMENT which is legal, valid, and enforceable and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable. 23.This complete Agreement has been executed by the parties in multiple originals, each having full force and effect. 10 Rev D Beaumont Bulk Solutions LLC By:______________________________________ (Signature) Nasser A. Ahmad General Manager Date_____________________________________ City of Beaumont By:______________________________________ (Signature) Kenneith Williams City Manager Date_____________________________________ ATTEST: ___________________________ (Signature) ___________________________ (Printed Name and Title) Date_______________________ Executed in duplicate this ________day of ____________, 2025. 11 Rev D 12 Rev D EXHIBIT A "Description of Project and Owner Property" BULK CEMENT TERMINAL AND BARGE DOCK PHASE 1 – CEMENT IMPORT TERMINAL (SUBJECT TO A SEPARATE AGREEMENT) The OWNER is proposing the development of a state-of-the-art import terminal for cementitious materials, primarily cement, in a strategic location to provide essential construction materials to markets in high demand. The proposed project would have an initial estimated annual throughput during a three-year ramp-up period of 360,000 metric tons per year (MTPY), 480,000 MTPY, and 600,000 MTPY of cement during the 1st year, 2nd year, and 3rd year, respectively, and during the 4th year and thereafter, 800,000 MTPY of cement and a maximum throughput capacity of 2,000,000 MTPY. In addition to the import terminal, the construction of a barge dock is being considered as a second phase of the project. The construction of the barge dock is subject to market conditions. The southern region of the United States, particularly in Texas and Louisiana, is in short supply of cement which lags both the current and projected future demand. By providing a cost-effective and reliable source of top-quality cement, the proposed project would help fill the existing and projected future gap between supply and demand. The project is an estimated $135 million investment with operations projected to generate approximately 39, 50, 61, and 74 new full-time equivalents (“FTEs”) during the first, second, third and fourth operating year, respectively. However, at maximum throughput capacity the estimated new, direct and indirect FTE count could increase to 140. The project is expected to create up to 170 peak construction jobs and will include opportunities for local contractors, laborers, vendors and suppliers. The current timeline aims to begin construction in 2026, with an estimated operation date in 2028. On-site time to construct consists of a 24-month period. PHASE 2 – BARGE DOCK The construction of a barge dock, if approved, would add an additional $15.5 million to the total investment. The construction of the barge dock is subject to market conditions and may commence 5 years following commercial operations of the terminal. This phase of the project would take approximately 10 months to complete. This phase would create no additional full- time equivalents but would allow for an increase in throughput capacity. 12 Rev D EXHIBIT B "Base Year Property" The reinvestment zone contains an old grain elevator that is being demolished by the Port of Beaumont due to obsolescence. This base year taxable value as certified will be attached, by consent of the parties, when same is calculated and adopted by the Jefferson County Appraisal District. The base year taxable value will be zero as this property has no taxable value. 13 Rev D EXHIBIT C " Reinvestment Zone 14 Rev D 11.29 ACRES OF LAND OUT OF THE DAVID BROWN SURVEY, ABSTRACT NO. 5 JEFFERSON COUNTY, TEXAS BEING 11.29 acres of land, out of and a part of The David Brown Survey, Abstract No. 5, Jefferson County, Texas, being part of Tract 10 of several tracts of land described in a deed to The Port of Beaumont Navigation District of Jefferson County, Texas, recorded in Volume 769, Page 361, Deed Records, Jefferson County, Texas; said 11.29 acre tract being more fully described by metes and bounds as follows, to wit: Note: Bearings, coordinates, distances and acreage are based on the Texas Coordinate System of 1983, South Central Zone, US Survey Feet, and are referenced to SmartNet, North America. BEGINNING at a concrete monument found on the intersection of the North right-of-way line of a dedicated closed roadway named Buford Street, Ordinance No. 08-065 and filed under 2008029823, Official Public Records, Jefferson County, Texas, and the West line of ExxonMobil Corporation Properties, recorded in Volume 148, Page 249, Deed Records, Jefferson County, Texas; said monument being on the East line of said Tract 10, having a Texas Coordinate of N: 13970461.44 E: 3525623.02; from which a ½” steel rod, capped and marked “SOUTEX”, found for the Southwest corner of a tract of land described in a deed to Socony Mobil Oil Company, Inc, recorded in Volume 1292, Page 508, Deed Records, Jefferson County, Texas, bears South 07 deg., 23 min., 41 deg., West, a distance of 563.52’; THENCE, South 86 deg., 52 min., 20 sec., West, a distance of 464.06’, to a point for corner; being the Southwest corner of the herein described tract; THENCE, North 28 deg., 32 min., 28 sec., West, a distance of 63.69’, to a point for corner; THENCE, on an arc of a curve to the right, having a radius of 601.50’, an arc length of 155.41’, a chord bearing of North 14 deg., 31 min., 04 sec., West, a chord distance of 154.98’, to a point for corner; THENCE, North 07 deg., 06 min., 53 sec., West, a distance of 682.02’, to a point for corner on the South bank line of The Neches River; said point for corner being the Northwest corner of the herein described tract; THENCE, to the points for corners on the South bank line of said Neches River the following bearings and distances: South 65 deg., 19 min., 05 sec., West, a distance of 23.53’ North 90 deg., 00 min., 00 sec., East, a distance of 22.61’ North 52 deg., 46 min., 34 sec., East, a distance of 10.24’ North 74 deg., 03 min., 53 sec., East, a distance of 52.29’ North 82 deg., 34 min., 04 sec., East, a distance of 133.45’ South 72 deg., 23 min., 16 sec., East, a distance of 10.04’ North 90 deg., 00 min., 00 sec., East, a distance of 5.52’ 15 Rev D North 79 deg., 46 min., 27 sec., East, a distance of 79.04’ North 72 deg., 22 min., 07 sec., East, a distance of 69.83’ North 82 deg., 45 min., 39 sec., East, a distance of 68.89’ North 43 deg., 59 min., 18 sec., East, a distance of 20.18’ North 32 deg., 13 min., 09 sec., East, a distance of 71.73’ North 22 deg., 07 min., 02 sec., East, a distance of 17.60’ North 38 deg., 27 min., 13 sec., East, a distance of 27.04’ THENCE, North 90 deg., 00 min., 00 sec., East, continuing on the South bank line of said Neches River, a distance of 17.11’, to a point for corner being the Northeast corner of the herein described tract; THENCE, South 03 deg., 24 min., 13 sec., East, a distance of 1040.76’, to the POINT OF BEGINNING and containing 11.29 acres of land, more or less. This description is based on the Land Survey made under the direct supervision of Anthony M. Leger, Registered Professional Land Surveyor No. 5481 on April 5, 2024. 16 Rev D EXHIBIT D "Tax Abatement Sched ule" (Exact tax years are subject to Abatement Period Notice from OWNER to CITY) PHASE 2 – BARGE DOCK PROJECTED CONSTRUCTION START: Q1-2031 INVESTMENT: $15.5 MILLION ABATEMENT PROJECTED PERCENTAGE YEAR TAX YEAROF VALUE ABATED 12032100% 22033100% 32034100% 42035100% 52036100% 62037100% 72038100% 82039100% 92040100% 102041100% 17 Rev D EXHIBIT E "City of Beaumont Abatement Policy" It is understood and agreed that all abatement agreements granted herein shall conform to this abatement policy, except as set forth in Section 2, and to the Texas TaxCode. 18 Rev D 18 Rev D EXHIBIT F “Affiliates of Owner” There are two OWNER-related entities, as follows: 1.Terra Aggregates, LLC (Terra) 2.River Cement Sales Company, dba Buzzi Unicem USA (Buzzi) Neither affiliate has existing property in Jefferson County. 19 Rev D103025 TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN THE PROJECT CEMENT REINVESTMENT ZONE This Tax Abatement Agreement (hereinafter referred to as "the Agreement") is made, entered, and executed between The City of Beaumont, Texas (hereinafter referred to as the "CITY"), and Beaumont Bulk Solutions LLC, (hereinafter referred to as "OWNER"), the owner of taxable property in Beaumont, Jefferson County, Texas, located in the Project Cement Reinvestment Zone as described below ("Project Cement Reinvestment Zone"). I.AUTHORIZATION This Agreement is authorized by the Texas Property Redevelopment and Tax Abatement Act, Tax Code, Chapter 312, V.T.C.A., as amended, and by authorization of the City following the designation of the Project Cement Reinvestment Zone. II.DEFINITIONS 1.As used in this Agreement, the following terms shall have the meanings set forth below: a.The "2025 Certified Appraised Value" means the January 1, 2025 value of the property within the Reinvestment Zone, as certified by the Jefferson County Appraisal District as of that date and described in Paragraph 3 and Exhibit 8. b."Improvements" means the buildings or portions thereof and other improvements, including fixed machinery, equipment and process units, used for commercial or industrial purposes that are constructed by OWNER on the property after December 31, 2025. c."Construction Phase" means a material and substantial improvement of the property which represents a separate and distinct construction operation undertaken for the purpose of constructing the Improvements. The period of Construction Phase ends when commercial operation of the New Facility commences as defined by the completed installation of constructed Eligible Property that serves the purpose for which it is designed. d."Abatement" means the full or partial exemption from ad valorem taxes of certain property in a Reinvestment Zone designated for economic development purposes. e.“Abatement Period” means the consecutive period of calendar years, as specified in this Agreement, during which the Project is entitled to receive the ad valorem tax abatements granted herein, commencing on January 1 of the 1 Rev D103025 first tax year following the date of Completion and the commencement of Commercial Operations, and ending on the last day of the final tax year for which such abatements are granted. f."Abatement Period Notice" has the meaning given in Section IV. "Eligible Property" means the buildings, structures, g.fixed machinery, equipment andprocess units, construction in progress and Improvements necessary to the operation and administration of the New Facility. h."New Eligible Property " means Eligible Property, the construction of which commences subsequent to the date of execution of this Agreement. A list of the New Eligible Property is set forth in the Application for Tax Abatement originally filed by OWNER, within the City of Beaumont, Texas ("the Application"), which is incorporated herein by reference and made a part hereof. During the Construction Phase of the New Eligible Property, OWNER may make such change orders to the New Eligible Property as are reasonably necessary to accomplish its intended use. i."Ineligible Property" is fully taxable and ineligible for tax abatement andincludes land, supplies, inventory, housing, vehicles, improvements for the generation or transmission of electrical energy not wholly consumed by a new facility or expansion; any improvements, including those to produce, store or distribute natural gas, fluids or gasses, which are not integral to the operation of the facility; deferred maintenance, property to be rentedor leased, property which has a productive life of less than ten years, or any other property for which abatement is not allowed by state law. j."Affiliates" of any specified person or entity means any other person or entity which, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under direct or indirect common control with such specified person or entity. For purposes of this definition , "control" when used with respect to any person or entity means (i) the ownership, directly or indirectly, or fifty percent (50%) or more of the voting securities of such person or entity, or (ii) the right to direct the management or operations of such person or entity, directly or indirectly, whether through ownership (directly or indirectly) of securities, by contract or otherwise, and the terms "controlling" and "controlled" have meanings correlative to the foregoing. k.“Full-time equivalents”, A full-time equivalent employment position is one that provides at least 1,600 hours annually. The number of full-time equivalent employment positions is determined by adding the total number of hours worked and/or actual paid leave (such as vacation, sick leave, jury duty) of all employees, less overtime hours, and dividing that sum by 1,600. All existing jobs as well as those created must be maintained throughout the term of a tax 2 Rev D103025 abatement agreement. 2.The Tax Abatement Policy for granting tax abatements in a reinvestment zone created in Beaumont, Jefferson County, Texas, which was adopted via Resolution No. 24- 223 by the City Council of the City of Beaumont September 3, 2024, is incorporated herein by reference, together with any applicable amendments, except however, any definitions contained herein shall control and be applicable to this Agreement. Ill.SUBJECT PROPERTY 3.The Reinvestment Zone is an area within Beaumont, Jefferson County, Texas, comprising approximately 11.29 acres of land. The Project Cement Reinvestment Zone was designated by order of the Commissioners’ Court of Jefferson County, Texas pursuant to Sec 312.401 of the taxcode, dated TBD, a copy of which is attached hereto as Exhibit C and is hereby incorporated. The 2025 Certified Appraised Value was unavailable at the time of this agreement. The agreement is to be supplemented with the 2025 Certified Appraised Value when available. The most recent certified appraised value is as follows: 2024 Certified Appraised Value: Land Only$661,279 Improvements$937,500 Personal Property$0 (includes Inventory) The 2025 Certified Appraised Value is subject to change based upon final certification of the values by Jefferson County Appraisal District. Upon certification, by consent of the parties, the 2025 Certified Appraised Value will be attached to Exhibit B. IV.VALUE AND TERM OF AGREEMENT 4.OWNER anticipates this project will entail the construction of a Phase 1 state-of-the- art import terminal for cementitious materials, with an investment of $135 million and thirty- nine (39), fifty (50), sixty-one (61) and seventy-four (74) new full-time equivalents, in the first, second, third and fourth operating year, respectively,—consisting of permanent direct employee full-time equivalents, permanent contractor full-time equivalents, and other individuals supporting the project, whether employed by OWNER, its parent or affiliated entities, or by third-party service providers, with construction of the terminal starting by the last day of December 2027. OWNER shall use commercially reasonable efforts to ensure that at least eight (8), ten (10), twelve (12) and fifteen (15) of the full-time equivalents, in the first, second, third 3 Rev D103025 and fourth operating year, respectively, hired by OWNER, OWNER’s contractors, OWNER’s service providers, or the Port’s service providers reside in Beamont, Texas. These full-time equivalents may be current employees of said contractors and service providers, newly allocated to OWNER, or new full-time equivalents hired by OWNER and/or its contractors and service providers. OWNER shall certify the requisite job levels annually to the county in which the CITY is located, following Completion and each tax year thereafter during the Term of the Abatement, that OWNER is in compliance with each applicable term of this AGREEMENT. The annual reports must contain details regarding new full-time equivalents in a format similar to Exhibit G attached hereto. OWNER shall construct the PROJECT with an estimated investment of not less than $135 million for the Phase 1 cement import terminal. In the event that such employment falls below thirty-nine (39), fifty (50), sixty-one (61) or seventy-four (74) new full-time equivalents in the first, second, third or fourth operating year, respectively, or eight (8), ten (10), twelve (12) or fifteen (15) full-time equivalents residing in Beaumont, Texas, Abatement shall be reduced proportionate to such employment decline beginning with the tax year in which the decline occurs and each tax year thereafter per the calculation cited below where: For purposes of determining the revised abatement amount for failure to create fifty (50), sixty-one (61) or seventy-four (74) full-time equivalents in the first, second and third operating year, respectively: A1 = initial Abatement $s A2 = revised Abatement $s E1 = 74 full-time equivalents E2 = revised employee count A2 = A1 x (E2/E1) For purposes of determining the revised abatement amount for failure to create eight (8), ten (10), twelve (12) and fifteen (15) of the full-time equivalents, in the first, second, third or fourth operating year, respectively, that reside in Beaumont, Texas, provided, however, that if commercially reasonable efforts to achieve such Beaumont residency levels were unsuccessful in providing the required results, such efforts are properly documented, and such shortfall is substantiated by credible evidence, then such shortfall shall not be deemed a failure for purposes of this calculation; A1 = initial Abatement $s A2 = revised Abatement $s E1 = 15 full-time equivalents that are Beaumont, Texas residents E2 = revised Beaumont, Texas resident count A2 = A1 x (E2/E1) 4 Rev D103025 Any amounts shall be payable to the CITY within ninety (90) days of written notice default, with interest accruing at four percent (4%) per annum from the date of such notice until paid in full. OWNER anticipates the follow-on construction of a Phase 2 barge dock, if approved, with an investment of $15.5 million. The construction of the barge dock is subject to market conditions and may commence 5 years following commercial operations of the terminal. Phase 2 will be subject to a separate agreement. In order to incentivize construction of both phases in the City of Beaumont, the CITY has developed a tax abatement schedule where OWNER will receive the benefit of a tax abatement for each phase of the project except that the abatement term for any individual phase shall not exceed ten (10) years. Each phase will be assigned its own individual tax account by the Jefferson County Appraisal District and be subject to its own agreement. The Term of the Abatement pursuant to this Agreement (the “Abatement Term”) shall be a period of ten (10) consecutive tax years beginning on January 1 of the tax year following completion of the project, as specified by OWNER in a written notice to the CITY ("Abatement Period Notice"), unless sooner terminated pursuant to other provisions of this AGREEMENT. CITY will request that the Jefferson Central Appraisal District establish discrete account numbers for each unit to facilitate efficient administration of this Agreement. In each year that this Agreement is in effect, the amount of abatement shall be an amount equal to the percentage indicated below. The appraised value, as defined in the Property Tax Code, of New Eligible Properties comprising each phase shall be abated in accordance with the following scale which is also found in Exhibit D: (Exact tax years are subject to Abatement Period Notice from OWNER to CITY) PHASE 1 – CEMENT IMPORT TERMINAL PROJECTED CONSTRUCTION START: Q3-2026 INVESTMENT: $135 MILLION 39 FULL-TIME EQUIVALENTS: FIRST YEAR 50 FULL-TIME EQUIVALENTS: SECOND YEAR 61 FULL-TIME EQUIVALENTS: THIRD YEAR 74 FULL-TIME EQUIVALENTS: FOURTH YEAR ABATEMENT PROJECTED PERCENTAGE YEAR TAX YEAROF VALUE ABATED 5 Rev D103025 12029100% 22030100% 32031100% 42032100% 52033100% 62034100% 72035100% 82036100% 92037100% 102038100% OWNER shall make a total contribution of Six Hundred Thousand Dollars ($600,000) to the CITY for the purpose of funding a riverfront project located near the Port. Such contribution shall be made in three (3) equal installments of Two Hundred Thousand Dollars ($200,000) each, payable over three (3) consecutive calendar years, commencing upon the Completion and commencement of Commercial Operations of the Project. The first installment shall be due on or before November 15 of the first calendar year of the (“abatement period”). TAXABILITY V. 5.During the period that this tax abatement is effective ("abatement period"): 1.The value of Ineligible Property shall be fully taxable, subject to any exemptions available by statute; 2.The appraised value, as defined in the Property Tax Code, of New Eligible Property shall be abated as set forth above under the section entitled "VALUE AND TERM OF AGREEMENT." VI.CONTEMPLATED IMPROVEMENTS 6.As set forth in the Application, which is incorporated herein for all purposes, OWNER represents that it will construct a Phase 1 import terminal for cementitious materials, with an investment of $135 million and a potential Phase 2 barge dock, with an investment of $15.5 million. During the Construction Phase, OWNER may make such change orders to the project as are reasonably necessary. All Improvements shall be completed in accordance with the Application and all applicable laws, ordinances, rules, or regulations. OWNER agrees to make bidding information available to qualified local contractors, vendors, manufacturers and labor and to conduct pre-bid meetings from time to time with potential local bidders and suppliers of services and materials for the project. VII.EVENTS OF DEFAULT 6 Rev D103025 7.During the abatement period covered by this Agreement, the CITY may declare a default hereunder by OWNER if OWNER (i) fails to commence construction by December 31, 2027 the “Construction Commencement Date”, (ii) fails to construct Phase 1 of the New Facility or (iii) fails to comply with any of the material terms of this Agreement, or (iv) if any representation made by OWNER in this Agreement is false or misleading in any material respect. OWNER shall have the option to request, at least ninety (90) days prior to the then-current Construction Commencement Date, one-year extension(s) to the then- current Construction Commencement Date, with approval from the CITY of such request not to be unreasonably withheld or delayed. 8.If the CITY declares that OWNER is in default of this Agreement, the CITY shall notify OWNER in writing. If such default is not cured within sixty (60) days from the date of such notice ("Cure Period"), then this Agreement may be terminated. In the case of a default for causes beyond OWNER's reasonable control which cannot with due diligence be cured within the Cure Period, the Cure Period shall be deemed extended if OWNER (i) shall notify the CITY of OWNER's intention to institute steps reasonably necessary to cure such default, (ii) shall proceed to cure such default, and (iii) shall submit a proposed schedule for the completion of the New Facility, including the estimated date for completion of the New Facility, a reasonable explanation concerning the reason for the delay, and a reasonable estimate of the overall percent of the New Facility that is completed as of the date of such notice. 9.In the event OWNER (i) allows its ad valorem taxes onthe New Facility to become delinquent or fails to timely and properly follow the legal procedures for the protest and appeal of the ad valorem taxes on the New Facility or (ii) defaults under this Agreement and fails to cure, this Agreement may then be terminated. In the event of termination of this Agreement pursuant to the provisions of this paragraph, all taxes previously abated by virtue of this Agreement will be recaptured and paid within sixty (60) days of the termination, together with penalties and interest as required by the Texas Property Tax Code. 10.In the event the New Facility is completed and begins commercial operations, but subsequently discontinues operations for any reason excepting fire, explosion, or other casualty, accident, or natural disaster, force majeure or governmental mandate, for a period of one (1) year during the abatement period, then this Agreement shall terminate subject to 7 Rev D103025 the City providing notice and an opportunity to cure pursuant to Section 8. In the event of termination pursuant to the provisions of this paragraph, the abatement of the taxes for the calendar year during which the New Facility no longer operates shall terminate, but there shall be no recapture of prior years' taxes abated by this Agreement. The taxes otherwise abated shall be paid to the CITY prior to the delinquency date for such year. In no event shall OWNER be required to pay such taxes within less than sixty (60) days of the termination. VIII.ADMINISTRATION 11.This Agreement shall be administered on behalf of the CITY by its City Manager. Upon completion of the New Facility, the CITY Manager shall annually evaluate the New Facility to ensure compliance with this Agreement. 12.The Chief Appraiserof the Jefferson County Appraisal District is required to annuallydetermine (i) the taxable value pursuant to the terms of this abatement of the real and personal property comprising the Project Cement Reinvestment Zone and (ii) the full taxable value without abatement of the real and personal property comprising the Project Cement Reinvestment Zone. The Chief Appraiser is required to record both the abatement taxable value and the full taxable value in the appraisal records. The full taxable value listed in the appraisal records shall be used to compute any recapture. Each year OWNER shall cooperate with the Chief Appraiser and furnish him or her with information reasonably requested pursuant to Chapter 22, Tax Code, V.T.C.A. Such information shall also be provided to the CITY to facilitate evaluation for compliance with this Agreement. 13.If afternotice of default andfailure to cure, the CITY terminates this Agreement, it shall provide OWNER written notice of such termination. In the event of termination, OWNER may file suit in the Jefferson County District Court appealing termination within ninety (90) days after receipt from the CITY of written notice of termination. If an appeal is filed, OWNER shall remit to the CITY within sixty(60) days after receipt of the notice of termination, any recaptured taxes as may be payable during the pendency of the litigation under Section 42.08, Tax Code, V.T.C.A. If the final determination of the appeal increases OWNER tax liability, OWNER shall pay the additional tax to the CITY pursuant to Section 42.42, Tax Code, V.T.C.A. If the final determination of the appeal decreases OWNER tax liability, the CITY shall refund to OWNER the difference between the amount of tax paid and the amount of tax for which OWNER is liable together with 8 Rev D103025 interest pursuant to Section 42.43, Tax Code, V.T.C.A. IX.ASSIGNMENT 14.OWNER may assign this Agreement to an Affiliate without the written consent of the CITY, provided that OWNER shall provide written notice of such assignment to the CITY. Except as provided in the immediately preceding sentence, OWNER may assign this Agreement with the written consent of the CITY, which consent shall not be unreasonably withheld, delayed or conditioned. Any assignment shall provide that the assignee shall irrevocably and unconditionally assume all the duties and obligations of the assignor upon the same terms and conditions as set out in this Agreement. No assignment shall be approved if OWNER or the assignee is delinquent in ad valorem taxes due the CITY. X.NOTICE 15.Any notice required to be given under the provisions of this Agreement shall be in writing andshall be served when it is deposited, enclosed in a wrapper with the postage prepaid thereon, and by registered or certified mail, return receipt requested, in a United States Post Office, addressed to the CITY or OWNER. If mailed, any notice shall be deemed to be received three (3) days after the date of deposit in the United States Mail. Unless otherwise provided in this Agreement, all notices shall be delivered to the following addresses: To OWNER: OWNER: Beaumont Bulk Solutions LLC c/o Terra Aggregates LLC 3005 S Lamar Blvd, STE D109, #446, Austin, TX 78704 Attn: Nasser A. Ahmad, CEO & Co-Founder Beaumont Bulk Solutions LLC c/o River Cement Sales Company 100 Brodhead Road, Suite 230 Bethlehem, PA 18017 Attention: Chief Financial Officer Beaumont Bulk Solutions LLC c/o River Cement Sales Company 100 Brodhead Road, Suite 230 Bethlehem, PA 18017 Attention: General Counsel With a copy to: Megan Gallien 9 Rev D103025 CFO Griffith Moseley, Johnson & Associates, Inc. 2901 Turtle Creek Drive, Suite 445 Port Arthur, TX 77642 To the CITY:Kenneth Williams City Manager 801 Main Street Beaumont, TX 77701 Sharae Reed City Attorney 801 Main Street Beaumont, TX 77701 Chris Boone Director of Planning & Community Development 801 Main Street Beaumont, TX 77701 Either party may designate a different address by giving the other party ten (10) days written notice. XI.AUTHORITY 16.Each of the parties hereto represents and warrants to the other party that (i) it has all requisite power and authority to execute and deliver, to perform its obligations under and to consummate the transactions contemplated by this Agreement and (ii) the execution and delivery of this Agreement, the performance of its obligations under and the consummation by each party of the transactions contemplated by this Agreement have been duly authorized by all requisite corporate authority on the part of OWNER and by all requisite governmental authority on the party of the CITY and (iii) upon execution and delivery of this Agreement, this Agreement will constitute valid and binding legal obligations of such party. 10 Rev D103025 10 Rev D103025 XII.EFFECTIVE DATE 17.This Agreement may be executed in counterparts and the effective date of the Agreement shall be the date the CITY executes this Agreement, so authorizing, on the date of the countersignature hereto by the Manager of the City of Beaumont on this__________day of , 2025 (“Effective Date”). XIII.MISCELLANEOUS 18.In the event any section, subsection, paragraph, sentence, phrase or word herein is held invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and shall be read as if the parties intended at all times to delete said invalid section, subsection, paragraph, sentence, phrase or word. 19.The CITY agrees to record certified copy of this Agreement in the Deed Records of Jefferson County, Texas. 20.This Agreement shall be construed under the laws of the State of Texas. Venue for any action under this Agreement shall be the State District Court of Jefferson County, Texas. 21.This Agreement shall be subject to change, modification or, except in the event of default which has not been cured as provided herein, termination, only with the mutual written consent of the CITY and OWNER. 22.SEVERABILITY In the event any provision of this AGREEMENT is illegal, invalid, or unenforceable under present or future laws, then, and in that event, it is the intention of the Parties hereto that the remainder of this AGREEMENT shall not be affected thereby, and it is also the intention of the Parties to this AGREEMENT that in lieu of each clause or provision that is found to be illegal, invalid, or unenforceable, a provision be added to this AGREEMENT which is legal, valid, and enforceable and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable. 11 Rev D103025 11 Rev D103025 23.This complete Agreement has been executed by the parties in multiple originals, each having full force and effect. Beaumont Bulk Solutions LLC By:______________________________________ (Signature) Nasser A. Ahmad General Manager Date_____________________________________ City of Beaumont By:______________________________________ (Signature) Kenneith Williams City Manager Date_____________________________________ ATTEST: ___________________________ (Signature) ___________________________ (Printed Name and Title) Date_______________________ Executed in duplicate this ________day of ____________, 2025. 12 Rev D103025 13 Rev D103025 EXHIBIT A "Description of Project and Owner Property" BULK CEMENT TERMINAL AND BARGE DOCK PHASE 1 – CEMENT IMPORT TERMINAL The OWNER is proposing the development of a state-of-the-art import terminal for cementitious materials, primarily cement, in a strategic location to provide essential construction materials to markets in high demand. The proposed project would have an initial estimated annual throughput during a three-year ramp-up period of 360,000 metric tons per year (MTPY), 480,000 MTPY, and 600,000 MTPY of cement during the 1st year, 2nd year, and 3rd year, respectively, and during the 4th year and thereafter, 800,000 MTPY of cement and a maximum throughput capacity of 2,000,000 MTPY. In addition to the import terminal, the construction of a barge dock is being considered as a second phase of the project. The construction of the barge dock is subject to market conditions. The southern region of the United States, particularly in Texas and Louisiana, is in short supply of cement which lags both the current and projected future demand. By providing a cost-effective and reliable source of top-quality cement, the proposed project would help fill the existing and projected future gap between supply and demand. The project is an estimated $135 million investment with operations projected to generate approximately 39, 50, 61, and 74 new full-time equivalents (“FTEs”) during the first, second, third and fourth operating year, respectively. However, at maximum throughput capacity the estimated new, direct and indirect FTE count could increase to 140. The project is expected to create up to 170 peak construction jobs and will include opportunities for local contractors, laborers, vendors and suppliers. The current timeline aims to begin construction in 2026, with an estimated operation date in 2028. On-site time to construct consists of a 24-month period. PHASE 2 – BARGE DOCK (SUBJECT TO A SEPARATE AGREEMENT) The construction of a barge dock, if approved, would add an additional $15.5 million to the total investment. The construction of the barge dock is subject to market conditions and may commence 5 years following commercial operations of the terminal. This phase of the project would take approximately 10 months to complete. This phase would create no additional full- time equivalents but would allow for an increase in throughput capacity. 13 Rev D103025 EXHIBIT B "Base Year Property" The reinvestment zone contains an old grain elevator that is being demolished by the Port of Beaumont due to obsolescence. This base year taxable value as certified will be attached, by consent of the parties, when same is calculated and adopted by the Jefferson County Appraisal District. The base year taxable value will be zero as this property has no taxable value. 14 Rev D103025 EXHIBIT C " Reinvestment Zone 15 Rev D103025 11.29 ACRES OF LAND OUT OF THE DAVID BROWN SURVEY, ABSTRACT NO. 5 JEFFERSON COUNTY, TEXAS BEING 11.29 acres of land, out of and a part of The David Brown Survey, Abstract No. 5, Jefferson County, Texas, being part of Tract 10 of several tracts of land described in a deed to The Port of Beaumont Navigation District of Jefferson County, Texas, recorded in Volume 769, Page 361, Deed Records, Jefferson County, Texas; said 11.29 acre tract being more fully described by metes and bounds as follows, to wit: Note: Bearings, coordinates, distances and acreage are based on the Texas Coordinate System of 1983, South Central Zone, US Survey Feet, and are referenced to SmartNet, North America. BEGINNING at a concrete monument found on the intersection of the North right-of-way line of a dedicated closed roadway named Buford Street, Ordinance No. 08-065 and filed under 2008029823, Official Public Records, Jefferson County, Texas, and the West line of ExxonMobil Corporation Properties, recorded in Volume 148, Page 249, Deed Records, Jefferson County, Texas; said monument being on the East line of said Tract 10, having a Texas Coordinate of N: 13970461.44 E: 3525623.02; from which a ½” steel rod, capped and marked “SOUTEX”, found for the Southwest corner of a tract of land described in a deed to Socony Mobil Oil Company, Inc, recorded in Volume 1292, Page 508, Deed Records, Jefferson County, Texas, bears South 07 deg., 23 min., 41 deg., West, a distance of 563.52’; THENCE, South 86 deg., 52 min., 20 sec., West, a distance of 464.06’, to a point for corner; being the Southwest corner of the herein described tract; THENCE, North 28 deg., 32 min., 28 sec., West, a distance of 63.69’, to a point for corner; THENCE, on an arc of a curve to the right, having a radius of 601.50’, an arc length of 155.41’, a chord bearing of North 14 deg., 31 min., 04 sec., West, a chord distance of 154.98’, to a point for corner; THENCE, North 07 deg., 06 min., 53 sec., West, a distance of 682.02’, to a point for corner on the South bank line of The Neches River; said point for corner being the Northwest corner of the herein described tract; THENCE, to the points for corners on the South bank line of said Neches River the following bearings and distances: South 65 deg., 19 min., 05 sec., West, a distance of 23.53’ North 90 deg., 00 min., 00 sec., East, a distance of 22.61’ North 52 deg., 46 min., 34 sec., East, a distance of 10.24’ North 74 deg., 03 min., 53 sec., East, a distance of 52.29’ North 82 deg., 34 min., 04 sec., East, a distance of 133.45’ South 72 deg., 23 min., 16 sec., East, a distance of 10.04’ North 90 deg., 00 min., 00 sec., East, a distance of 5.52’ 16 Rev D103025 North 79 deg., 46 min., 27 sec., East, a distance of 79.04’ North 72 deg., 22 min., 07 sec., East, a distance of 69.83’ North 82 deg., 45 min., 39 sec., East, a distance of 68.89’ North 43 deg., 59 min., 18 sec., East, a distance of 20.18’ North 32 deg., 13 min., 09 sec., East, a distance of 71.73’ North 22 deg., 07 min., 02 sec., East, a distance of 17.60’ North 38 deg., 27 min., 13 sec., East, a distance of 27.04’ THENCE, North 90 deg., 00 min., 00 sec., East, continuing on the South bank line of said Neches River, a distance of 17.11’, to a point for corner being the Northeast corner of the herein described tract; THENCE, South 03 deg., 24 min., 13 sec., East, a distance of 1040.76’, to the POINT OF BEGINNING and containing 11.29 acres of land, more or less. This description is based on the Land Survey made under the direct supervision of Anthony M. Leger, Registered Professional Land Surveyor No. 5481 on April 5, 2024. 17 Rev D103025 EXHIBIT D "Tax Abatement Sched ule" (Exact tax years are subject to Abatement Period Notice from OWNER to CITY) PHASE 1 – CEMENT IMPORT TERMINAL PROJECTED CONSTRUCTION START: Q3-2026 INVESTMENT: $135 MILLION 39 FULL-TIME EQUIVALENTS: FIRST YEAR 50 FULL-TIME EQUIVALENTS: SECOND YEAR 61 FULL-TIME EQUIVALENTS: THIRD YEAR 74 FULL-TIME EQUIVALENTS: FOURTH YEAR ABATEMENT PROJECTED PERCENTAGE YEAR TAX YEAROF VALUE ABATED 12029100% 22030100% 32031100% 42032100% 52033100% 62034100% 72035100% 82036100% 92037100% 102038100% 18 Rev D103025 EXHIBIT E "City of Beaumont Abatement Policy" It is understood and agreed that all abatement agreements granted herein shall conform to this abatement policy, except as set forth in Section 2, and to the Texas Tax Code. 19 Rev D103025 19 Rev D103025 EXHIBIT F “Affiliates of Owner” There are two OWNER-related entities, as follows: 1.Terra Aggregates, LLC (Terra) 2.River Cement Sales Company, dba Buzzi Unicem USA (Buzzi) Neither affiliate has existing property in Jefferson County. 20 Rev D103025 EXHIBIT G "FTE Compliance Reporting" FTE Reporting Summary As of \[Date\] FTE Base Hours1,600 Total FTEs (All)X.XX Total FTEs (Beaumont Residents)X.XX Beaumont FTE %XX% Per-Category Breakdown Beaumont Full Time Equivalent CategoryFTEsFTEsBeaumont Zip Codes Beaumont Bulk Solutions StaffX.XXX.XX\[Zip code\], \[Zip Code\] Beaumont Bulk Solutions Stevedore and Terminal OperatorX.XXX.XX\[Zip code\], \[Zip Code\] Beaumont Bulk Solutions Customers' TruckersX.XXX.XX\[Zip code\], \[Zip Code\] Port's Designated Ship Tug ContractorX.XXX.XX\[Zip code\], \[Zip Code\] Port's Industrial Switching ContractorX.XXX.XX\[Zip code\], \[Zip Code\] Class I Rail CarriersX.XXX.XX\[Zip code\], \[Zip Code\] Beaumont Bulk Solutions Home Office StaffX.XXX.XX\[Zip code\], \[Zip Code\] TOTALS X.XXX.XX 21 Rev I Application for TaxAbatement City of Beaumont This application willbecome part of the Tax AbatementAgreements and any knowingly false representations will be grounds for the voiding of the agreement. An original copy of this request should be submitted to the Community Development Department, City of Beaumont, P. O. Box 3827, Beaumont, Texas 77704. Part I– Applicant Information Application Date Beaumont BulkSolutions LLC (BBS) Company Name: Address: 3005 S LAMAR BLVD, STE D109, #446, AUSTIN, TX 78704 Telephone: +1(949) 356 2666 Current Numberof Employees: none n/a Annual Sales: Employees in Taxing Jurisdiction: none Pending –property located at 1745 Buford Street, Beaumont, TX 77701 Beaumont Address: The project would be located on property leased from the Port, and the property is currently an inactive grain elevator. The Port is currently demolishing the former grain elevator to make the parcel available for Project Neches or another port-centric development. none YearsinJeffersonCounty: Legal Counsel: Address: Telephone: LimitedLiabilityCompany Corporation Partnership Proprietorship Has the Applicant Company recently been cited or currently under investigation for any X) violations of Federal, State, and/or City laws, codes, or ordinances?(No() Yes If yes, please provide detailed information on the nature and status of the violation(s) on a separate sheet of paper. 8 Rev I Is any interest in the project presently held by a member ofthe Beaumont City Council, Planning X) (No()Yes and Zoning Commission, or any City employee? Attach a description of the Applicant Company, including a brief history, corporate structure, and business plan and annual statement, if available. Beaumont Bulk Solutions LLC (BBS) will construct and own the project and create the jobs. BBS was formed in December of 2024. BBS is owned jointly by Terra Aggregates LLC (Terra) and River Cement Sales Company, dba Buzzi Unicem USA (Buzzi). BBS will sell bulk cement to Terra and Buzzi who in turn will sell the cement to various local and regional ready-mix and concrete products companies. Terra is a Texas limited liability company with expertise in importing cement via marine routes and distributing cement via truck, rail, and barge. Buzzi is a Delaware corporation and wholly owned subsidiary of RC Lonestar Inc. Buzzi specializes in efficient cement distribution and terminal operations. Part II –Project Information Location Address: 1745 Buford Street, Beaumont, TX 77701 DBROWN ABS 5 TR 1-A LEASED LAND A-16 12.886AC (LESS 1.443AC SUBMERGED) = 11.29AC Legal Description: 300005-000-000101-00000 Tax Acct. Numbers: Attach statement fully explaining project, describe existing site and improvements, describe all proposed improvements, and provide list of improvements and equipment for which abatement is requested. If available, provide a map showing location of existing and proposed improvements. Section A– Economic Development TypeofFacility/abatement: Industrial Central Administrative office services Manufacturing Distribution Brown fields site Other Describe product or service to be provided: The Company is proposing the development of a state-of-the-art import terminal for cementitious materials, primarily cement, in a strategic location to provide essential construction materials to markets in high demand. The proposed project would have an initial estimated annual throughput during a three-year ramp-up period of 360,000 metric tons per year (MTPY), 480,000 MTPY, and 600,000 MTPY of cement during the 1st year, 2nd year, and 3rd year, respectively, and during the 4th year and thereafter,800,000 MTPY of cement and a maximum throughput capacity of 2,000,000 MTPY. In addition to the import terminal, the 9 Rev I construction of a barge dock is being considered as a second phase of the project but the construction of the barge dock is subject to market conditions. FTEs will vary with increases in throughput during this ramp-up period. See table below. Part III – Economic Information Construction Estimate: To be determined Contractor: Ph1 $135MM;Ph 2 $15.5MM Start Date: Ph 1 Q3 2026; Ph 2 Q1 2031 Contract Amount: Ph 1 Q3 2028; Ph 2 Q4 2031 170 Completion Date:Peak Construction Jobs: If Modernization:n/a Estimated current economic life of structure n/ayears Added economic life from modernizationn/ayears Permanent Job Creation/Retention: 0 0 Current employment Jobs to be Retained: 39 29 Full-time jobs createdatopening 20 59 31 at 3 years 20 th During the 4year and thereafter, the full-time jobs created will be 74. (Afull-time equivalent position is one that provides at least2,080 hours annually within the City’s taxing jurisdiction.) Provide information, ifavailable,on (1) new employee needs; e. g.skilledvs. non-skilled, levelof education, experience,etc.; All employees will need to be skilled in their field and require any certifications needed for such. (2) any training the company will provide to its new employees; Company will provide safety training and any other site-specific training as needed, but all employees will need to be skilled in their field. The projectis committed to hiring and training local employees. (3) attach a list ofnew jobs to be created by job class with associated wage andsalary ranges. Also, provide an average wage for hourly jobs and an average salary for management jobs; Positions will include terminal management & administration, terminal operations & 10 Rev I maintenance, longshoremen, and third-party services providers (e.g., truck drivers, Port contractors and rail carrier crew members). Positions will consist of permanent direct full- time equivalent jobs, permanent contractor full-time equivalent jobs, and other individuals supporting the project, whether employed by the owner of the project, its parent, or affiliated entities, or by third-party service providers. See table below. BASE SALARY JOB DESCRIPTIONFTE COUNT (WITHOUT BENEFITS) *BBSStaff: Terminal Manager1$111,000/yr. Assistant Terminal Manager1 $84,000/yr. Terminal Administrator 1 $51,000/yr. Control Room Operator3 45.67/hr. BBS’s Stevedore and Terminal Operator: Vessel Discharge ILA 2 $37.17/hr. Vessel Clean-up ILA1 $32.84/hr. to $37.17/hr. Terminal Operations and Loading 9 $30.00/hr.to $37.00/hr. Maintenance2 $34.00 /hr. to $37.50 /hr. BBS’s Customers’ Truckers Truck Drivers 34 $38.00/hr. Port’s Designated Ship Tug Contractor: Ship Tug Crew 1 $40.00/hr. to $50.00/hr. Port’s Industrial Switching Contractor: TGS Industrial Switching 5 $35.00/hr. to $40.00/hr. Class I Rail Carriers: Rail Crew 6 $35.00/hr. to $40.00/hr. BBS’s Home Office Staff: Indirect Administration 8 $50,000/yr to $180,000/yr. th 4 YEARPOST RAMP-UP PERIOD TOTAL FTE74 COUNT Anticipated Total FTE during Three-Year Ramp-upPeriod: First Ramp-up Year: 34 direct FTEs plus 5 support FTEs, total 39 FTEs Second Ramp-up Year: 44 direct FTEs plus 6 supportFTEs, total 50FTEs Third Ramp-up Year: 53 directFTEs plus 6 supportFTEs, total 59FTEs Total headcount at max capacity could potentially reach 140. 11 Rev I (4) attach a list ofbenefits provided to employees. Indicate if employees’ dependents have access to the company’s health plan; Employees will be eligible to participate in a group health plan and would have the option to elect coverage for his/her spouse and/or dependents. (5) attach a list describingthetypeof incentive and/or assistance you will berequestingfrom other City departments and/or utility companies; Tax abatements from Jefferson County, the Port of Beaumont, the Sabine Neches Navigation District, Drainage District 6 for 10 years at 100%. (6)describeanygoodwillbenefitsyourcompanywill providetothecommunity. Company will support local labor, suppliers, and contractors during the construction and during ongoing operations of the project. Company’ local management team will engage with the local community and actively participate in community outreach and development. The Company has pledged to contribute to the City to assist with funding of their riverfront project near the Port of Beaumont’s main office. PERSONAL PROPERTY (FURNITURE FIXTURES ESTIMATED APPRAISED VALUE ON SITE LAND IMPROVEMENTS AND EQUIPMENT) Value onJanuary 1 proceeding abatement $661,279 $937,500 (being demolished) Estimatedvalue of new abatable investment $150,500,000 (Phase 1 & 2) Estimatedvalue of properties not subject to $661,279 $21,000,000 (FFE + inventory) abatement (i. e. inventory, supplies) Estimatedvalue of property subject to advalorem Exempt - $150,500,000 (Phase 1 & 2) $21,000,000 (FFE + inventory) tax at end of abatement Port Owned * Please state the method used to determine the estimated value of proposed improvements (i. e. appraisal of plans and specs, etc.) (1) Provide the Governmental Entity with (a) a statement agreeing to expend a designated amount (“Project Cost”) for the Project and, if the abatement is based on Required Jobs, a separate statement agreeing that the required minimum number of full-time jobs will be created (“RequiredJobs”)andmaintainedduring the term of the Contract; For the construction of the cement import terminal, the Company agrees to expend an estimated $135 million investment. The construction of a barge dock, if approved, would add an additional $15.5 million to the total investment. The construction of the barge dock would commence 3-5 years following commercial operations of the terminal but the construction of the barge dock is subject to market conditions. The Company is also investigating some additional investments at the site, which could bring the total investment across all phases to 12 Rev I $150.5 million. The Company agrees to generate a minimum of39, 50, 59, and 74 new full-time equivalents during the first, second, third, and fourth operating year, respectively. However, at maximum throughput capacity the estimated new, direct, and indirect FTE count could increase to 140. (b) an explanation as to how the Project will provide a long term significant positive economic benefit to the community, the Governmental Entity, and its taxpayers; See Attachment “C” (c) information as to what attempt will be made to utilize Beaumont contractors and workers; and BBS will manage a competitive bidding process for all aspects of the procurement of the facility. Certain special or proprietary equipment is only available from certain foreign vendors or suppliers. Except for such specialty equipment, we are including and will consider local contractors, manufacturers, and laborers where applicable, make them aware of the project, and provide them the opportunity to bid all relevant opportunities. We will use readily available means to attract locally qualified employers, contractors, and vendors to provide them the opportunity to bid on relevant aspects of the development of our facility at the outset of procurement. All requests for proposal submitted to all vendors, suppliers, and contractors will include a notification of BBS’s commitment to use local resources, local procurement requirements, and meet the local resource obligations of the tax abatement agreement. (d) information as to what attempt will be made to utilize Beaumont or Jefferson County minority contractors and workers. See item (c) (2) Furnish the GovernmentalEntity withawrittenstatement that tax abatement will be a significant factor in determining whether the Project for the development, redevelopment or improvement of the Real Property will take place. As the Company continues to evaluate the project’s viability, economic development incentives will directly impact the economics of the project. Without incentives, the project will be less competitive relative to projects in other locales. Because of this, based on the Company’s economic modeling, incentives will be significant factors in a final investment decision. (3) Agree to executea Contract with the Government Entity containing the covenants and conditions required by the Governmental Entity. 13 Rev I Company Representative to be Contacted: Megan Gallien Griffith, Moseley, Johnson & Associates 2901 Turtle Creek Drive, Suite 445 Port Arthur, Texas 77642 mgallien@gmjinc.com 409-656-7279 AuthorizedCompanyOfficial: Nasser A. Ahmad Terra Aggregates LLC nahmad@terra-aggregates.com Authorized Signature 14 Rev I ATTACHMENT “A” PROJECT DESCRIPTION BULK CEMENT TERMINAL AND BARGE DOCK PHASE 1 – CEMENT IMPORT TERMINAL The Company is proposing the development of a state-of-the-art import terminal for cementitious materials, primarily cement, in a strategic location to provide essential construction materials to markets in high demand. The proposed project would have an initial annual throughput during of a three year ramp-up period of 360,000 metric tons per year (MTPY), 480,000 MTPY, and 600,000 MTPY of cement during the 1st year, 2nd year, and 3rd year, respectively, and during the 4th year and thereafter, 800,000 MTPY of cement and a maximum throughput capacity of 2,000,000 MTPY. In addition to the import terminal, the construction of a barge dock is being considered as a second phase of the project. The construction of the barge dock is subject to market conditions. The southern region of the United States, particularly in Texas and Louisiana, is in short supply of cement which lags both the current and projected future demand. By providing a cost-effective and reliable source of top-quality cement, the proposed project would help fill the existing and projected future gap between supply and demand. The project is an estimated $135 million investment with operations projected to generate approximately 39, 50, 59, and 74 new full-time equivalents (“FTEs”) during the first, second, third, and fourth operating year, respectively. However, at maximum throughput capacity the estimated new, direct, and indirect FTE count could increase to 140. The project is expected to create up to 170 peak construction jobs and will include opportunities for local contractors, laborers, vendors, and suppliers. The current timeline aims to begin construction in 2026, with an estimated operation date in 2028. On-site time to construct consists of a 24-month period. PHASE 2 – BARGE DOCK (SUBJECT TO A SEPRATE AGREEMENT) The construction of a barge dock, if approved, would add an additional $15.5 million to the total investment. The construction of the barge dock is subject to market conditions and may commence 3-5 years following commercial operations of the terminal. This phase of the project would take approximately 10 months to complete. This phase would create no additional full-time equivalents, but would allow for an increase in throughput capacity. 15 Rev I ATTACHMENT “B” AFFILIATES OF OWNER There are two BBS-related entities, as follows: 1. Terra Aggregates, LLC (Terra) 2. River Cement Sales Company, dba Buzzi Unicem USA (Buzzi) Neither affiliate has existing property in Jefferson County. 16 Rev I ATTACHMENT “C” ECONOMIC IMPACT STUDY APPLICATION TO BE SUPPLEMENTED WITH COMPLETED IMPACT STUDY IN PROGRESS 17 Rev I ATTACHMENT “D” MAPS AND PLATS FOR REINVESTMENT ZONE BOUNDARIES 18 Rev I 11.29 ACRES OF LAND OUT OF THE DAVID BROWN SURVEY, ABSTRACT NO. 5 JEFFERSON COUNTY, TEXAS BEING 11.29 acres of land, out of and a part of The David Brown Survey, Abstract No. 5, Jefferson County, Texas, being part of Tract 10 of several tracts of land described in a deed to The Port of Beaumont Navigation District of Jefferson County, Texas, recorded in Volume 769, Page 361, Deed Records, Jefferson County, Texas; said 11.29 acre tract being more fully described by metes and bounds as follows, to wit: Note: Bearings, coordinates, distances, and acreage are based on the Texas Coordinate System of 1983, South Central Zone, US Survey Feet, and are referenced to SmartNet, North America. BEGINNING at a concrete monument found on the intersection of the North right-of-way line of a dedicated closed roadway named Buford Street, Ordinance No. 08-065 and filed under 2008029823, Official Public Records, Jefferson County, Texas, and the West line of ExxonMobil Corporation Properties, recorded in Volume 148, Page 249, Deed Records, Jefferson County, Texas; said monument being on the East line of said Tract 10, having a Texas Coordinate of N: 13970461.44 E: 3525623.02; from which a ½” steel rod, capped and marked “SOUTEX”, found for the Southwest corner of a tract of land described in a deed to Socony Mobil Oil Company, Inc, recorded in Volume 1292, Page 508, Deed Records, Jefferson County, Texas, bears South 07 deg., 23 min., 41 deg., West, a distance of 563.52’; THENCE, South 86 deg., 52 min., 20 sec., West, a distance of 464.06’, to a point for corner; being the Southwest corner of the herein described tract; THENCE, North 28 deg., 32 min., 28 sec., West, a distance of 63.69’, to a point for corner; THENCE, on an arc of a curve to the right, having a radius of 601.50’, an arc length of 155.41’, a chord bearing of North 14 deg., 31 min., 04 sec., West, a chord distance of 154.98’, to a point for corner; THENCE,North 07 deg., 06 min., 53 sec., West, a distance of 682.02’, to a point for corner on the South bank line of The Neches River; said point for corner being the Northwest corner of the herein described tract; THENCE, to the points for corners on the South bank line of said Neches River the following bearings and distances: South 65 deg., 19 min., 05 sec., West, a distance of 23.53’ North 90 deg., 00 min., 00 sec., East, a distance of 22.61’ North 52 deg., 46 min., 34 sec., East, a distance of 10.24’ North 74 deg., 03 min., 53 sec., East, a distance of 52.29’ North 82 deg., 34 min., 04 sec., East, a distance of 133.45’ South 72 deg., 23 min., 16 sec., East, a distance of 10.04’ North 90 deg., 00 min., 00 sec., East, a distance of 5.52’ North 79 deg., 46 min., 27 sec., East, a distance of 79.04’ 19 Rev I North 72 deg., 22 min., 07 sec., East, a distance of 69.83’ North 82 deg., 45 min., 39 sec., East, a distance of 68.89’ North 43 deg., 59 min., 18 sec., East, a distance of 20.18’ North 32 deg., 13 min., 09 sec., East, a distance of 71.73’ North 22 deg., 07 min., 02 sec., East, a distance of 17.60’ North 38 deg., 27 min., 13 sec., East, a distance of 27.04’ THENCE,North 90 deg., 00 min., 00 sec., East, continuing on the South bank line of said Neches River, a distance of 17.11’, to a point for corner being the Northeast corner of the herein described tract; THENCE, South 03 deg., 24 min., 13 sec., East, a distance of 1040.76’, to the POINT OF BEGINNING and containing 11.29 acres of land, more or less. This description is based on the Land Survey made under the direct supervision of Anthony M. Leger, Registered Professional Land Surveyor No. 5481 on April 5, 2024. 20